Mortgage

A real property unit is often used as collateral for a debt. Before a real property unit can be used as collateral for a debt it must be mortgaged. A real property unit, a designated share and an unseparated parcel belonging to someone other than the property owner can be mortgaged. A leasehold can also be mortgaged when certain conditions are met.

Under certain conditions, a joint mortgage may be registered for multiple properties, which have the same owner or the same owners with equal shares.

  • The property owner or lessee can apply for a mortgage.
  • It is also possible to apply for a mortgage, registration of title and registration of a leasehold at the same time.

A mortgage deed is given as proof that a mortgage has been granted. The mortgage deed can be a written document or simply an entry in the title and mortgage register (electronic mortgage deed). The mortgages related to a real property unit are shown on the certificate of mortgages and encumbrances.

A mortgage deed does not indicate either a debt relationship or the size of the debt. The right of lien is only established when the mortgage deed is submitted to the creditor, such as a bank, as collateral for a debt.

The mortgage is valid permanently, unless it is specifically extinguished.

Good to know

  • The property owner who most recently applied for the registration of title can apply for a mortgage.
  • The property owner can also authorise an agent to apply for the mortgage. The power of attorney must bear the name of the property owner and the agent, information about the property and the mortgage amount.
  • A mortgage cannot be registered until the title has been granted. A mortgage and registration of title can be applied for at the same time.
  • If an application concerns the registration of several mortgages on the same object, the order of precedence of the mortgages can be determined in the application.
  • In the application, it is possible to stipulate that the registration authority shall submit the mortgage deed directly to the creditor specified on the deed. In such cases, the creditor becomes the holder of the right of lien when the mortgage is registered. If such a stipulation has been made, it cannot be changed or annulled without the consent of the specified recipient.
  • The applicant must state whether he or she wants the mortgage deed as a written document or as an electronic mortgage deed, (i.e. an entry in the title and mortgage register).
  • Each registered mortgage is subject to a charge.

Apply for a mortgage

  • You can fill in the application in writing or online.
  • Fill in an application on the web by logging into the Property Transaction Service.
  • Complete the application form (in Finnish) and send it to the National Land Survey.
  • Write the mortgage object and mortgage amount on the application. Sign the application.
  • Handling time estimate: 20–30 days
  • Fee of the service: Price list (in Finnish)