ASP is an acronym for Home Savings and you can start saving at the age of 15-39 but under 18 can only save on your own income.According to an ASP account, saving for a first home or a private home seems like a good idea , and that is if you are planning to buy a home. The government comes up with interest rate subsidies and requires banks to give lower interest rates on their mortgage loans. For others, an alternative might be a savings account.
In addition to the deposit rate, the bank pays an additional interest to the saver after reaching the target savings and completing the home sale. In addition to this, a 1% deposit rate and a 2-4% surcharge are tax free and can be changed during the savings period. You can also transfer the contract to another bank if you wish. And that’s not all: the contract can be terminated at any time, but then you can’t enjoy the extra interest because the conditions are not met.
What does the ASP Agreement contain?
The ASP Saver undertakes to save 10% of the target home’s cost, and the savings must last at least eight quarters, or two years. Deposits must be made in at least eight calendar quarters of EUR 150-3000 at time, representing a saving of EUR 1,200-24,000. Usually the loan is taken from the same bank where you save for your home, but you can borrow from another MFI if you transfer your ASP savings contract there.
ASP saving with your spouse
Spouses and cohabitants can save on the same ASP account. However, the couple is entitled to only one interest subsidy. Only one needs to be between 18 and 39 years old.
How common is saving with an ASP account?
The amount of ASP savings and loans has grown tremendously over the last seven years. In 2010, there were approximately EUR 400 million and approximately 7,000 ASP loans. In September 2017, the corresponding figures were approximately EUR 2,700 million and 34,000.
Concessional loan, what is it?
The bank must grant an ASP interest rate subsidy at a lower interest rate than its other first home purchase loans. Interest subsidy means that the state pays 70% of the interest, which exceeds 3.8% of the principal of the loan. For example, if the interest rate is 6%, the interest subsidy is paid at 1.54%. In this case, interest will remain payable at 4.66%. It should also be remembered that the borrower can use the interest for his tax deductions.
The maximum loan interest rate is:
- Helsinki € 180,000
- Espoo, Vantaa and Kauniainen € 145,000
- Other municipalities € 115,000
In addition, it is possible for the bank to obtain additional financing for the balance if the maximum amount of the interest-rate loan is insufficient.