The government has prepared a proposal that would limit the amount of household debt relative to income.
The Treasury minister Annika Saarikko (Central) and Prime Minister Sanna Marin (sd) said in the Helsingin Sanomat municipal election exam that they were critical of the household debt ceiling, which the government itself had prepared.
“I have very reservations about the preparation. Preparations have already been set in motion by the Minister of Finance Petteri Orpon during (kok). I have reservations about this from the principle point of view that I do not want Finland to develop in a direction where owner-occupied housing is only a privilege of the rich, ”Saarikko said.
Prime Minister Marin said he was on the same lines.
“This includes problems, I am critical and cautious about preparation. I’m glad Annika thinks the same way, ”Marin said.
STT said on Monday the government plans to limit mortgages and other loans to no more than about five times the amount of annual gross income. The aim would be to curb excessive indebtedness. There is no political decision yet.
In the fall of 2019, a working group of the Ministry of Finance proposed that the amount of total loans to households should not exceed 4.5 times the annual gross income of the household when the household applies for a new loan. The repayment period of the mortgage should not exceed 25 years.
According to the BTI, the government would be sending the bill for statements in the summer, but slightly more lenient than the working group’s proposal.
According to calculations by the Financial Supervisory Authority and the Bank of Finland, last year about 28 per cent of the euro in new housing loans was granted to households with a debt-to-income ratio of more than 450 per cent after the new loan. About 21 per cent was granted to households with a debt-to-income ratio of more than 500 per cent.
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