Helsinki's Shared Equity Scheme: A Step-by-Step Guide for First-Time Buyers

HELSINKI – The City of Helsinki is expanding its shared equity housing scheme, offering first-time buyers the chance to purchase a home with as little as a 5% deposit by co-owning the property with a municipal housing authority. Under the "Oma Koti" (My Own Home) program, the city contributes up to 25% of the purchase price, significantly lowering the mortgage amount required from mainstream lenders.

The push comes at a critical time. With war continuing on Europe’s eastern flank, supply chain disruptions hitting Russian industry, and extreme weather events becoming commonplace from France to West Africa, economic certainty feels like a luxury. For many young professionals and families in Helsinki, the dream of homeownership has seemed increasingly remote amid rising interest rates and persistent inflation. The Oma Koti scheme is designed as a stabilising measure, providing a buffer against market volatility and giving buyers a foothold they couldn’t otherwise secure.

Administered through the Housing Finance and Development Centre of Finland (ARA), the program targets new-build apartment complexes in developing neighbourhoods. Recent projects in Jätkäsaari and the burgeoning towers of Kalasatama have included allocations for Oma Koti participants, allowing them to buy into areas that would typically be beyond their financial reach. The goal is to prevent the city’s key workers from being priced out to the suburbs and to maintain socially diverse communities within the city core.

Breaking Down the Numbers: How It Works

The financial mechanics are straightforward. Consider a two-room, 50-square-metre apartment in a new development in Vallila with a market price of €350,000. Under a traditional mortgage, a buyer might need a deposit of €35,000 (10%) and secure a loan for the remaining €315,000 – a daunting figure for many.

With the Oma Koti scheme, the calculation changes dramatically. The buyer would provide a 5% deposit, which is €17,500. The city then contributes its 25% equity share, amounting to €87,500. This leaves the buyer needing a mortgage for only the remaining 70%, or €245,000. This smaller loan is more accessible and comes with lower monthly repayments. While living in the home, the buyer pays their mortgage as usual, plus a small, below-market-rate rent to the city on its 25% share.

Who Qualifies and What Happens Next?

Eligibility is tightly controlled to ensure the program helps its intended audience. Applicants must be first-time buyers, be Finnish citizens or have permanent residency, and meet specific income caps. For 2026, a single applicant's gross annual income cannot exceed €55,000, while the limit for a couple is €75,000. They must also use the property as their primary residence.

The key long-term feature is "staircasing." After an initial fixed period of five years, the homeowner can begin buying back the city’s 25% share in increments. The purchase price for these shares is based on the property's current market value at the time of the transaction, not the original price. This means if the property value has increased, the buyout will cost more, but the owner also benefits from the capital growth on their initial 70% stake.

For those looking to apply, the next intake window for the Oma Koti program opens on September 1, 2026, for properties slated for completion in 2028. Prospective buyers are advised to first consult with mortgage advisors at banks like Nordea or OP Group to secure pre-approval for the loan portion. Full details and application forms will be available on the City of Helsinki's official housing portal later this month.