• Sun. Mar 3rd, 2024

YIT Boosts Sales of Unsold Apartments with Interest Rate Cap on Mortgages: Is it the Answer to Slow Market?


Feb 10, 2024
YIT’s Interest Rate Cap: Did It Cause a Rush in Apartment Purchases?

YIT, the largest construction company in Finland, has announced that it currently has almost 1,270 unsold apartments, with over 800 of these being located in Finland. In an effort to boost sales, the company is offering to pay the two percent interest rate cap on a home buyer’s mortgage.

The demand for new apartments has increased since the offer was announced, but sales have not yet been impacted due to loan negotiations and other factors that can take time to finalize. Despite this, YIT’s head of housing, Antti Inkilä, is optimistic about the campaign’s success and expects the apartments to sell well before it ends in April.

However, there are concerns that potential buyers may not be aware of the interest rate ceiling and that this could hinder the campaign’s success. To address this issue, Inkilä emphasizes that buyers will receive financial stability by purchasing an apartment with a capped interest rate of two percent for five years. This reduces their monthly housing costs significantly compared to a corporate loan.

Inkilä believes that buyers will appreciate this benefit and hopes it will encourage them to purchase apartments from YIT. While some may prefer a price reduction on new apartments instead of an interest rate cap, YIT has chosen this option as it allows them to provide certainty and stability for buyers while also attracting more customers to their properties.

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