Garantia has been used in the purchase of over 100,000 Finnish homes. Many of us have friends, relatives, or colleagues who have used Garantia’s home loan guarantee when buying a home. However, there are many beliefs associated with home loan guarantees, and not all of them are true.

For more detailed information about the product: asuntolainatakaus.fi

Myth 1: Using Garantia is complicated and difficult – False

This myth is not true. Using Garantia is easy for those planning to buy a home. The home loan guarantee can be purchased during home loan negotiations.

How to obtain a home loan guarantee:

  1. Schedule a home loan negotiation with a Garantia partner bank.
  2. Express your desire to use Garantia’s guarantee as additional collateral.
  3. The bank will assess whether using the guarantee is possible in your situation and will review the terms and price of the guarantee.
  4. The Garantia guarantee attachment is signed along with other loan documents at the bank.
Myth 2: Garantia is not available from all banks – True

This is true. The Garantia guarantee can only be obtained from Garantia partner banks. Before scheduling a home loan negotiation, it is advisable to check Garantia’s partner banks at asuntolainatakaus.fi.

Myth 3: Using Garantia is expensive – False

The price of the home loan guarantee depends on factors such as the price of the home and the amount of the required guarantee. A guarantee for an affordable home is cheaper. Increasing the amount of self-financing also lowers the price of the guarantee.

For example, if the home costs 200,000 euros and the loan amount is 180,000 euros, the guarantee costs about 1,800 euros. If you have managed to save a bit more and only need a loan of 170,000 euros, the guarantee costs only about 600 euros. The guarantee is paid as a lump sum when the home loan is drawn.

Myth 4: A guarantor cannot be released with Garantia – False

You have already bought your home, and your parents have been asked to act as guarantors for the loan. Many may wonder if there is an option to release the parental guarantee.

With Garantia, it is possible to replace the additional collateral provided by parents, even if several years have passed since the loan was taken.

Myth 5: Garantia is only for first-time homebuyers – False

Garantia can be used not only for first-time home purchases but also in many other life situations.

You can use Garantia even if you have previously owned a home or if you are buying an investment property.

Myth 6: Garantia cannot be used in smaller towns – False

This myth is not true. Garantia can be used for home purchases nationwide, as long as the property being purchased is located in an urban area.

In smaller towns, it is common that some self-financing is required, even when using Garantia. For more detailed information about the situation in your area, it is advisable to ask a Garantia partner bank.

Ville Korte

SVP, Mortgage Guarantees

The author works as Senior Vice President for mortgage guarantees at Garantia and has over 20 years of experience in mortgage lending at Garantia and in the banking sector.

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Want to get a loan promise from the bank faster? See how you can benefit from Garantia’s home loan guarantee. Read blog 7.1.2025