Your own home with Garantia’s mortgage guarantee

Buying your own home is often one of life’s biggest dreams and most significant financial commitments. For many first-time buyers or families looking for a new home, Garantia’s mortgage guarantee can be the decisive factor that turns a dream into reality. But how exactly does a mortgage guarantee benefit you, and what advantages does it offer?

Garantia’s mortgage guarantee provides many significant benefits for home buyers. Among other things, it lowers the threshold for buying your own home by reducing the down payment, enables more independent decision-making without commitments from relatives, and guarantees your financial privacy. At the same time, it also provides peace of mind for your loved ones.

If you are planning to buy a home and considering your financing options, you should definitely learn more about mortgage guarantees.

Lower down payment – get your own home faster

One of the biggest hurdles to buying a home is often the large down payment required for the loan. Saving for it can feel like a years-long effort, especially if you are living in a rental and don’t have much left to save. With Garantia’s mortgage guarantee, you can reduce the required down payment, which allows you to get your own home faster and with less initial savings. This is a particularly big help for young people and first-time buyers.

An independent home – without commitments from relatives

For many, the idea of asking parents or other relatives to be a loan guarantor is embarrassing or even a barrier to buying a home. With Garantia’s mortgage guarantee, you can buy a home completely independently. This means, among other things, that your financial independence is preserved.

A person applying for a mortgage does not have to disclose their income, loans, or payment history to relatives. Your financial matters remain private – just as you want them.

If you need to make changes to the loan at some point, the negotiations are conducted directly with the bank. You do not have to negotiate loan changes or terms with relatives. You can have the discussions directly with the bank, which makes the process faster.

Peace of mind for everyone – no worries for your loved ones

A traditional relative acting as a guarantor for a mortgage can cause stress and worry for them due to potential financial risks. Financial matters can also easily lead to disputes that unnecessarily strain important relationships with loved ones. With Garantia’s mortgage guarantee, this can be avoided. Your relatives can have peace of mind, and they do not have to bear responsibility for your loan. This is a big relief for both you and them.

Savings for prosperity or a rainy day

When the down payment required to buy a home is reduced thanks to Garantia’s guarantee, you have more of your own savings left. Instead of using all your money to buy a home, you can save some as an emergency fund for a rainy day, invest it, or use the funds for things like home renovations or decorating. This gives you financial flexibility and security for the future.

Where can you get Garantia’s mortgage guarantee?

You can discuss the use of Garantia’s mortgage guarantee at a Garantia partner bank. The bank will assess with you whether a mortgage guarantee can be used in your specific situation and will go through the terms and price of the guarantee. The list of Garantia’s partner banks is available on the asuntolainatakaus.fi/en website.

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.

See Garantia’s tips for preparing for a housing loan negotiation: Buying your first home