Updated 8 October 2026
Most housing loans in Finland have a variable rate. The rate has two parts: a reference rate (viitekorko), which follows the market, and the bank's margin (marginaali), which stays the same for the whole loan.
The reference rate
The reference rate is usually a Euribor rate. In January 2026, 94% of new housing loans used a Euribor rate, according to the Bank of Finland: 59% the 12-month Euribor, 19% the 3-month and 16% the 6-month.
The reference rate changes only on the loan's interest reset date (korontarkistuspäivä). A loan tied to the 12-month Euribor, for example, has its reference rate checked every 12 months, and the rate stays the same in between.
The margin
The bank sets the margin for each customer, and it stays the same for the whole loan term. The collateral and your ability to repay affect it, so comparing offers from several banks pays off.
Average rates
According to ECB statistics, the average rate on new housing loans in Finland was 3.24% in August 2026, against 2.77% a year earlier. Since 2015 it has ranged from 0.73% in November 2020 to 4.43% in October 2023.
Average rate on new housing loans · Finland, monthly
Source: ECB statistics.
At the end of May 2026, 95% of the housing loan stock was tied to Euribor and just under 4% had a fixed rate. Fixed-rate loans made up almost 6% of new housing loans in January to May 2026, at an average rate of 3.64% in May.
Example: a €250,000 loan
A €250,000 annuity loan over 25 years at 3.24%, the average rate on new housing loans in August 2026, costs €1,217 a month.
If the rate rises by one percentage point at the first annual reset, the payment becomes €1,348 a month, €131 more.
Protection against rising rates
- A fixed rate (kiinteä korko) stays the same for an agreed period.
- An interest rate cap (korkokatto) sets a maximum for the reference rate for an agreed period, for a separate fee.
In the example above, a fixed rate keeps the payment at €1,217 for the fixed period, and a cap limits how far it can rise.
Banks also offer other products, such as an interest rate collar (korkoputki).
ASP loans for first-time buyers come with a state interest subsidy. See Buying your first home.
Loan term
New housing loans can run for up to 40 years since June 2026. In July 2026, the average repayment period of new housing loans was almost 25 years, the longest in the Bank of Finland's statistics. For loans for an owner's own home it was 25 years and 3 months.
A longer term lowers the monthly payment and raises the total interest. The €250,000 loan at 3.24% costs €930 a month over 40 years, with about €196,000 in interest in total. Over 25 years the total interest is about €115,000.
Monthly payment on a €250,000 loanAnnuity loan, by interest rate
25 years40 yearsFirst monthly payment, calculated with the Asumisvalinta scenario engine.
Work out your own case
The comparison on Asumisvalinta lets you choose a fixed or variable rate, the loan term and annuity or equal-principal repayment. It shows year by year how buying does against renting and right of occupancy.
Sources
- Asuntolainojen keskikoron kehitys tasaantunut, Bank of Finland, 27 February 2026.
- Kotitalouslainojen korot nousivat toukokuussa 2026, Bank of Finland, 30 June 2026.
- Takaisinmaksuajaltaan pidempien asuntolainojen määrä kasvanut, Bank of Finland, 28 August 2026.
- Interest rates on new loans to households for house purchase, Finland, ECB Data Portal. Source: ECB statistics.
- Asuntolainan korko koostuu viitekorosta ja marginaalista and korkokatto, Nordea, read 8 October 2026.