Budgeting and regional allocation of State loans  

Every year the Finnish Parliament sets a maximum limit on the total budgeted sum available for interest subsidies and reserves for State guarantees.

In recent years, State funding has been used to finance the construction of about 5 000 new homes a year. Most of the dwellings have been financed by interest subsidy loans. The construction of state-supported rental housing has dropped lately because the low interest rate level has resulted in increased purchases of owner-occupied housing.

Interest subsidy loans are also used to finance the renovation of about 10 000 rental and owner-occupied apartments yearly.

The Government also budgets every year for the proportions of and interest subsidy loans that should be granted for different purposes – for rented housing, home ownership, part-ownership, right-of-occupancy housing and student housing loans – determines how loans will be allocated in regional terms. The construction of new housing is mainly financed in growth areas, where the need for more homes is greatest.