Finland to allow 40-year mortgages from June

Finland is set to introduce 40-year mortgage terms starting in June. The extended loan period will give borrowers more flexibility in managing housing costs.

Finland is preparing to allow home buyers to take out mortgages with repayment periods of up to 40 years, with the change expected to come into effect in June.

The move would significantly extend the maximum mortgage term available to Finnish borrowers, potentially making monthly repayments more manageable for first-time buyers and others struggling with affordability in the housing market.

Longer mortgage terms are a double-edged sword for borrowers — while lower monthly payments ease short-term financial pressure, the total interest paid over the life of the loan increases considerably. Financial experts have previously cautioned that very long loan periods can leave borrowers exposed to interest rate fluctuations over decades.