Kiinteistölaina

A kiinteistölaina, which translates to real estate loan or property loan in English, is a type of financing specifically used for the acquisition or refinancing of real estate. This loan is secured by the property itself, meaning that if the borrower defaults on the payments, the lender has the right to foreclose on the property to recover their losses. Kiinteistölainat are commonly sought by individuals for purchasing residential properties such as houses and apartments, as well as by businesses for commercial real estate investments.

The terms of a kiinteistölaina, including the interest rate, repayment period, and loan amount, are determined by various factors such as the borrower's creditworthiness, the value of the property, and prevailing market conditions. Interest rates can be fixed or variable, offering different levels of predictability for the borrower. The loan amount is typically a significant portion of the property's purchase price, with the borrower usually required to provide a down payment for the remainder. Repayment schedules are usually structured over many years, often decades, to make the monthly payments manageable for the borrower. The process of obtaining a kiinteistölaina involves a thorough application and assessment by the lending institution.