If you have ever thought about buying a house in the future, start saving now.
ASP loan and ASP account (ASP=asuntosäästöpalkkiojärjestelmä in Finnish) are bank services that are meant for people who are going to buy a home in the future. It is a saving system created by the state. ASP account helps you to save money in the long-term, although you must be aged between 18 and 39 when opening the ASP account. When you have saved at least 10 percent of the selling price of your home, the bank lends you the rest.
At first you have to open an ASP account in your bank. You have to be 18 years old for that. When you open the account, the minimum deposit is 150 euros. After the initial deposit you can make deposits of 150 – 3000 euros per each calendar quarter. You are required to make a minimum of eight quarterly deposits, however they do not need to be in consecutive quarters. Before you can get ASP loan, the deposits must have been made during at least two years.
When these terms are fulfilled the bank lends you the rest of the selling price of the house. One of the most important things about ASP is that if the loan interest rises over 3,8 percent, part of the interest will be paid by the state. In addition to that the bank promises tax-free interest on savings. However, if you realize that buying a home is not for you, the money you have saved can be drawn out from the ASP account.
In my opinion ASP saving is a very good way to save the money, even you do not by a home in the future. Because the deposits must have been made during at least two years, it teaches young people how the save money in the long-term. Buying a home is a big decision. When you start saving for that early, buying in the future will be much easier with a 10 % share of the selling price.
– initial deposit > 150 €
– quarterly deposit 150 € – 3000 €
– minimum of 8 calendar quarters, do not have to be consecutive
– minimum of 2 years
– 10 % of the selling price in savings
⇒ tax-free interest on savings
⇒ bank lends the rest of the house price
⇒ state will compensate the interest if over 3,8 %
Now is the time to start saving for the future.
ASP loan. Nordea. http://www.nordea.fi/en/personal-customers/loans/buying-a-home/asp-loan.html#tab=ASP-loan–ASP-account-. Read February 28th, 2016.
ASP-laina. OP. https://www.op.fi/op/henkiloasiakkaat/lainat/asuntolaina/asp-laina?id=20210&srcpl=8. Read February 28th, 2016.
Taloussanomat. http://www.taloussanomat.fi/raha/2015/07/02/arvokkaasta-asp-palkkiosta-valituksia-lautakunta-ohjeistaa-pankkeja/20158397/139. Read March 8th, 2016. (Picture)