Your own home should not depend on your background – A mortgage guarantee is an equal path to the housing market
Economic uncertainty and the employment situation are currently top of mind for those considering buying a home. At the same time, many wonder if owning a home is only achievable for those with wealthy relatives and family collateral to back them up. Social debate often turns to how wealth is inherited: is the housing market accessible only to those whose parents are already well-off?
According to recent studies, the Finnish dream of homeownership remains strong. According to the “Savings, Credit Use, and Payment Methods” study by Finance Finland, more than half of the participants live in an owner-occupied home, and it is still seen as an excellent way to accumulate wealth. To ensure this opportunity does not slip out of reach for ordinary working people, solutions are needed that do not require a large inherited fortune.
Garantia’s residential mortgage guarantee was developed to break down these barriers and create equal opportunities for all homebuyers. It offers an independent solution to a collateral shortfall, regardless of your background.
Five reasons why a professional guarantee is a fair and socially sustainable choice:
1) Opportunity independent of your starting point
Not everyone has the possibility to ask their parents or relatives to act as guarantors, and that should not be an obstacle to acquiring a home. We do not want a society where only the children of already wealthy families can build wealth. A professional guarantee puts all homebuyers on the same starting line: what matters is your own ability to pay and financial management, not the wealth of your relatives or the location of your parents’ home.
2) Security in uncertain times
The global political situation and economic fluctuations can cause concern. By arranging your mortgage collateral through a professional operator, you ensure that potential financial risks do not reflect on your family members. This brings peace of mind not only to you but also to your parents, who do not need to worry about their own home being used as collateral for their child’s loan.
3) Keeping savings as a buffer
Buying a home often requires a significant amount of savings. However, sometimes people want to keep their savings as a buffer for a rainy day or in investments, especially when the economic outlook is foggy. With a guarantee, you can acquire a home with less equity and maintain your own financial flexibility, which is sensible risk management for everyone.
4) Clarity and independence
When financial matters are handled by professionals, complicated intra-family obligations are avoided. Independence in real estate transactions is a valuable trait – it gives the freedom to make your own decisions and take responsibility for your own future without a debt of gratitude or concerns related to inheritance.
5) Flexibility in changing situations
Life is full of surprises, and moving to a new home might happen sooner than planned. A professional guarantee is a flexible tool that stays with you throughout the loan process. It eases the financial maneuverability of the entire family and enables flexible decisions at every stage of life.
How do you ensure your own home dream comes true?
The mortgage guarantee, implemented in cooperation with Garantia’s partner banks, is designed to remove obstacles on the path to home ownership. It is a modern and neutral way to settle collateral requirements – without anyone having to worry about inheritance or the collateral value of their parents’ home.
It is a fair solution that enables home sales and wealth growth when your own life situation is ready for it.
Are you ready to take the step toward your own home? See Garantia’s partner banks on our website and ask for a guarantee directly during your loan negotiations.
Read also: Why the mortgage guarantee became the new favorite?
Ville Korte
Head of Sales and Marketing
The author has over 20 years of experience in mortgage lending at Garantia and in the banking sector.