YIT, a leading construction company in Finland, announced that it currently has approximately 1,270 unsold apartments, with over 800 of them located within the country. In an effort to boost sales, the company has recently offered 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 made public. However, sales have not yet been affected due to the time-consuming nature of loan negotiations and other factors. Antti Inkilä, head of housing at YIT, is optimistic about the success of the campaign and believes that the apartments will sell well before it ends in April.
One concern is that potential buyers may not be aware of the interest rate ceiling or how it works. Inkilä emphasizes that this could hinder the campaign’s success and encourages YIT to clarify this point to potential buyers. He also highlights that while some may prefer a price reduction on new apartments, YIT prefers to focus on the benefits of the interest rate cap in order to attract buyers.
Inkilä believes that one of the biggest advantages of paying off a mortgage is financial stability for apartment buyers. He hopes that this incentive will encourage them to purchase apartments from YIT rather than other options available in the market. With a five-year loan interest rate capped at two percent, YIT aims to provide buyers with certainty about their cost of living once they purchase an apartment.