• I am about to buy an apartment in a housing company, whose articles of association contain a redemption clause. What should I do?

    If you buy an apartment in a housing company, whose articles of association contain a redemption clause, you cannot pay the sale price of the apartment, or parts of it, paid at the time of the trade with ASP savings or the ASP loan. The sale price must be paid using other own funds or some other type of interim loan. You must, however, agree on final ASP funding and any state guarantees at the time of the sale. Once you have determined that the redemption clause has not been exercised, the funds in the ASP account are used to pay the purchase price, any interim loans are repaid and the ASP loan is raised. If you have used other own funds to pay the sale price, you cannot use them towards the ASP loan. They can, however, be included in the 10 per cent required savings. If the redemption clause is exercised, the trade is cancelled. However, you can continue saving if you have not withdrawn any funds from the ASP account or the ASP loan.

  • I am planning on building a detached house. What can I pay for with the ASP loan?

    In addition to construction, the funds of the ASP account and the loan can be used to finance work related to the start of construction. Construction is deemed started when the casting of the foundation is started or the installation of the foundation structures is started. Groundworks cannot be included in ASP financing (e.g. excavation, stone blasting or felling trees). This means that you must have assets of your own in order to carry out groundworks before you can use the funds in your ASP account for construction or purchasing the plot.

  • I have agreed on an interim housing loan with the bank. Is there a deadline by which the missing ASP deposits must be made and the loan replaced with an ASP loan?

    When you purchase an apartment using interim financing, you must agree with the bank on the savings schedule for the missing deposits and the time at which the interim loan is replaced with the ASP loan. You must continue to make deposits into the ASP account until you have saved the required sum (at least eight deposits, whose sum corresponds to ten per cent of the purchase price of the apartment). The intended maximum period of time for this sum to be saved is two years. Interim financing must be replaced with the ASP loan within three months of meeting the criteria for an ASP loan, i.e. when the required savings and calendar quarters are fulfilled.

  • Is the ASP loan eligible for a government guarantee?

    The ASP interest subsidy loan is eligible for a government guarantee free of charge. The government guarantee may be up to 25 per cent of the loan sum. You must agree on the guarantee in writing during the loan negotiations before you close the sale on your apartment. The bank and the customer may agree on the securities for interim financing. You can apply for a government guarantee (but only up to 20 per cent of the loan) as security for the interim financing, if necessary. In this event, a 2.5 per cent guarantee fee is paid for the guarantee sum, which is not returned once the interim financing is later replaced with the ASP loan. The guarantee fee is not returned if the deal is closed on or later than 1 January 2017.

  • Can I pay for the plot using the ASP loan?

    The plot can be covered by the ASP loan, but in this case construction must start within six months of purchasing the plot. The required savings (10 per cent) is calculated based on the total amount including the plot and the cost estimate. Even if the plot were purchased using interim financing, construction must start within six months of purchasing the plot. If this deadline is not met, the ASP loan cannot be utilised. This is why it might be wise to use some other form of funding for plot acquisition and the ASP interest subsidy loan for construction. If you have already fulfilled the terms of the ASP scheme at the time of purchasing the plot, it is assumed that you will be using funds from the ASP account to purchase the plot. If there are funds remaining, the funds are used for construction next.

  • When is the bonus of 3,000 euros paid?

    The home saver’s bonus only applies to purchases made and construction started during the validity of the enabling act (2009/483). The home saver’s bonus may be paid for apartments that were bought in 2009–2011 using interim financing. Once you have saved the required amount for the ASP scheme, you must start repaying the interim financing as soon as possible using deposits made in the ASP account and the ASP interest subsidy loan. For this purpose, you may withdraw deposits made into the ASP account on the banking day following the date of the last deposit. The State Treasury pays the bonus upon request by the bank, and the bank transfers the amount to the customer’s account.

  • Which funding can I use to pay for fees payable before the sale is finalised?

    You cannot withdraw the down payment or retainer required from the ASP account before the sale is closed, but you may use own funds for payment. The portion paid before the sale is closed reduces the amount of the final loan, because you are not eligible for a loan for this portion. Neither can the portion paid before the sale is closed be calculated into the 10 per cent required savings. There can only be one date of conclusion of sale: the date on which the bill of sale is signed. In terms of ASP loans, there are no such things as an “initial sale” and a “final sale.”The sale price can be paid to the seller in several instalments, but there is still going to be one date of conclusion of sale, and it is usually when the first instalment is transferred to the seller.

  • What is meant by purchasing an apartment?

    Purchasing an apartment occurs on the day that you sign the bill of sale on your apartment. This is not the same as the date on which the ownership of the apartment is transferred to you. The ownership of the apartment may be transferred to the buyer later due to the remaining sale price of the apartment being paid later when the apartment is assigned to the buyer, for example. For those who are building a detached house, the apartment is deemed purchased when they start construction. Construction is deemed started when the casting of the foundation is started or the installation of the structural parts of the foundation is started. This is verified by providing a statement from the municipal building inspector, or in some other reliable manner. For those who are buying a prefabricated house, the home is deemed purchased when the prefabricated house is bought.

  • Can I purchase an apartment or start construction if I am still in the process of making the required deposits into my ASP account?

    You may agree with the bank on an interim financing loan, if you wish to purchase an apartment before you have met the terms of the ASP scheme. This requires, however, that you have made deposits to the ASP account during at least four calendar quarters. The terms of the interim financing are agreed with the bank, and ASP loan terms are not applied to this form of financing. Interim financing cannot come from parents or family members. Instead, it must be a loan granted by the bank. Neither can own funds be utilised at this time. If you purchase an apartment before you have made at least four deposits, the ASP agreement is terminated. This means that you will no longer be eligible for the ASP benefits.

  • Can I use other funds of my own to pay for the sale price in addition to the funds saved in my ASP account?

    The payment of the purchase price is always started with the funds from the ASP account. After this, it is possible to use other own funds, followed by the loan. The order is always as follows: 1; funds in the ASP account, 2; other own funds, and 3; loan.

  • How is the amount of required savings calculated, if a shared apartment is bought using savings from two separate ASP accounts?

    The savers may have separate loans or one shared loan. If the loan is shared, both savers must have made the required number of approved ASP deposits to their own account in order for the loan to be granted as shared. In addition to this, the savers must have saved 10 per cent of the purchase price of their own share. When the funds in two separate ASP accounts are used to purchase a shared apartment, a maximum of 3,000 euros in total is taken into account per calendar quarter. If the total amount of savings exceed 3,000 euros during a quarter, the savings can be divided and approved in varying amounts (e.g. 150 euros + 2,850 euros).

  • Can I rent my ASP apartment?

    You can only rent your ASP apartment in special circumstances. Studying or working abroad or outside the commuter area, as well as military service, are considered special circumstances. You can rent the ASP apartment for up to two years during the interest subsidy period and only if you meet special requirements. You must notify the State Treasury of the renting.