The State Treasury said it expects people with state-backed ASP housing loans to benefit from interest rate subsidies that are part of the system aimed at first-time buyers.
Finland's some 50,000 ASP loans total around 4.6 billion euros. These mortgages come with better terms and conditions than typical mortgages, such as the state covering 70 percent of interest costs for up to ten years when rates exceed 3.8 percent.
The main Euribor rates have been rising for over a year before a dramatic drop earlier this week, and that had translated into increased costs for borrowers in Finland.
Finland's most common Euribor reference rate—the 12 month Euribor—recently approached four percent, a level at which it is expected to stabilise.
That said, had the interest rate adjustment dates come up last week for all active ASP loans, the state-subsidised interest rate support would have kicked in for every one of these mortgages, Sanna Pälsi of the State Treasury told Yle.
Banks, however, adjust interest rates throughout the year, depending on when the loan was issued. But going forward, Pälsi said it was likely that the majority of ASP loans would qualify for state support as their interest rate adjustment dates are due.
This month Yle News' All Points North podcast also asked what's the best way to handle a mortgage interest rate adjustment. The segment starts around 13:50.
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