Debt-free price (velaton hinta)

The debt-free price (velaton hinta) tells you what a home really costs. It is the selling price plus the debt share, meaning the apartment’s portion of the housing company’s shared loan. The selling price is only the part you pay up front. The debt share stays as a housing company loan, which you pay down month by month as a financing charge (rahoitusvastike). When you compare two homes, always compare debt-free prices, not selling prices.

Example: a home’s debt-free price is 499,000 euros. It might split so that the selling price is 199,600 euros and the debt share is 299,400 euros. In that case you pay 199,600 euros at the moment of purchase, and the remaining 299,400 euros travels along as a housing company loan, which you pay off through the financing charge. Two homes can have the same debt-free price but a completely different selling price, so the selling price alone can look misleadingly cheap.

Marketing must always state both the debt-free price and the selling price. This is a legal requirement, so if a listing shows only one of them, ask the agent for both. Check the debt share and its repayment schedule in the property manager’s certificate (isännöitsijäntodistus) before you make an offer, because a large debt share means a higher financing charge each month.

Note the tax effect too: for share-based apartments, transfer tax is calculated on the debt-free price, so a larger debt share does not reduce the tax. The debt-free price is therefore the right number for comparison, for your budget, and for estimating the tax.