Mortgage loans for non-resident property buyers in Finland
Trofimov, Maxim (2014)
Trofimov, Maxim
HAAGA-HELIA ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201402192428
https://urn.fi/URN:NBN:fi:amk-201402192428
Tiivistelmä
The objective of the study is to find out whether it is possible for non-resident property buyers to obtain mortgage loans in Finnish banks. One intention is to investigate this possibility by conducting a field research among existing Finnish banks. Another intention is to see how this new information obtained from the study can be implemented in case company’s business.
The theoretical framework was mostly based on the information obtained from the Finnish government financial organizations, such as: Federation of Finnish Financial Services, Finnish Financial supervisor authority, Finnish competition and consumer agency, Bank of Finland and Housing Finance and Development Center of Finland. An inquiry concerning the research topic has been sent to all of these organizations to provide theoretical background for the study. Most of the responses that came back had a positive meaning regarding the subject. Ms. H from federation of Finnish financial services in particular has provided the most descriptive answer stating that there exists such a possibility for foreign property buyers to obtain housing loans in Finnish banks and it is not restrained by the Finnish legislation. However, according to Ms. H, important factors for the banks in such circumstance are to identify the customer and know where their money is coming from.
The study was conducted in the form of case studies on the sample of three different Finnish banks. The choice for this research strategy was made due to the need to collect detailed and in-depth information from each case. Focused interviews were used as a data collection tool. The analytical approach was qualitative because it emphasized on analyzing words not number to gain a better and deeper understanding of research subject.
The results revealed that provision of housing loans to non-resident property buyers is a delicate topic. Not all Finnish banks are willing to cooperate on this matter. Only three banks out of all contacted banks which were over at least a dozen, accepted the proposal to talk about this issue. All three of them have responded positively to being willing to cooperate with foreign customers on the subject of housing loans as long as their approval criteria was being met. Further test of these findings during the implementation stage which took place at Maxtrade Oy after the study has been conducted showed that only one bank, Handelsbanken in Tapiola has proven to be a reliable partner who would cooperate with foreign clients on reasonable terms. Since the completion of the study, couple of Maxtrade Oy clients have already successfully obtained mortgage loans from Handelsbanken in Tapiola in order to purchase their property in Finland.
In conclusion, all of the four research questions have developed positive and satisfying answers that fulfilled the purpose of this study.
The theoretical framework was mostly based on the information obtained from the Finnish government financial organizations, such as: Federation of Finnish Financial Services, Finnish Financial supervisor authority, Finnish competition and consumer agency, Bank of Finland and Housing Finance and Development Center of Finland. An inquiry concerning the research topic has been sent to all of these organizations to provide theoretical background for the study. Most of the responses that came back had a positive meaning regarding the subject. Ms. H from federation of Finnish financial services in particular has provided the most descriptive answer stating that there exists such a possibility for foreign property buyers to obtain housing loans in Finnish banks and it is not restrained by the Finnish legislation. However, according to Ms. H, important factors for the banks in such circumstance are to identify the customer and know where their money is coming from.
The study was conducted in the form of case studies on the sample of three different Finnish banks. The choice for this research strategy was made due to the need to collect detailed and in-depth information from each case. Focused interviews were used as a data collection tool. The analytical approach was qualitative because it emphasized on analyzing words not number to gain a better and deeper understanding of research subject.
The results revealed that provision of housing loans to non-resident property buyers is a delicate topic. Not all Finnish banks are willing to cooperate on this matter. Only three banks out of all contacted banks which were over at least a dozen, accepted the proposal to talk about this issue. All three of them have responded positively to being willing to cooperate with foreign customers on the subject of housing loans as long as their approval criteria was being met. Further test of these findings during the implementation stage which took place at Maxtrade Oy after the study has been conducted showed that only one bank, Handelsbanken in Tapiola has proven to be a reliable partner who would cooperate with foreign clients on reasonable terms. Since the completion of the study, couple of Maxtrade Oy clients have already successfully obtained mortgage loans from Handelsbanken in Tapiola in order to purchase their property in Finland.
In conclusion, all of the four research questions have developed positive and satisfying answers that fulfilled the purpose of this study.