Basic loans

A new Housing Bank basic loan scheme,including both loans for new construction and renewal of dwellings, is introduced in 2005.

This scheme is aimed at first-time home buyers as well as disadvantaged groups in the housing market, that is home seekers who do not easily obtain a loan or cannot afford more expensive loans in private credit institutions. The basic loans are first priority mortgage loans. The loan-amount given is adapted to the local housing market and to the particular public goals attached to the individual project. The Housing Bank will also continue to secure the financing of homes in rural districts where it is difficult to obtain mortgages at reasonable rates. Moreover the bank will provide basic loans for the financing of rental housing for priority purposes.

In issuing loans, it is important for the Housing Bank to promote environmental aspects, paying attention to sustainability of dwellings, including housing quality and design and energy efficiency. Increased attention is also given to making more homes physically accessible for all and to promoting universal design. The costs of universal design in dwellings are primarily associated with the installation of elevators and modification of entry access, although increased spatial needs can also raise project cost levels.

The Housing Bank aims to exercise increased flexibility in the use of its funds to obtain its overall goals, to achieve increased targeting and to meet the needs of local housing markets. To facilitate the administration of basic loans, the loan disbursement is tailored to the borrowers’ situation within reasonable limits. For individuals who have special needs, support (housing allowances) and loans can be combined. These financial packages are put together in collaboration with the municipalities.

Housing marked