Housing allowances

Housing allowances can be divided into direct allowances, consumption subsidies and housing production subsidies.

© Saara Sivonen

Direct housing allowances

The Ministry of Social Affairs and Health is responsible for the general planning, control and monitoring of the housing allowance legislation.  General Housing Allowance is intended to facilitate the housing costs of low-income households. General housing allowance is available for both rental and owner-occupied homes, in the same way as the Housing Allowance for Pensioners, which is paid for a pensioner living alone or with a spouse.

The Ministry of Education and Culture is responsible for the Housing Supplement for Students. Whether students are entitled to the housing supplement or the general housing allowance is determined by the type of housing and family circumstances.

Consumption subsidies

Mortgage tax deductions and the subsidies related to the ASP system are subsidies for consumption.

Housing production subsidies

The state also supports housing production with interest subsidy loans and support schemes.

Rented housing:

There are around 800,000 rented apartments in Finland, about half of which have been financed by national Arava loans or interest subsidy loans. The State continues to support the construction of rented and right-of-occupancy homes with interest subsidy loans granted by the Housing Fund of Finland (ARA).Loan amounts and emphases are decided on annually by Parliament, after which the Government approves the regional and other grounds for granting loans with the allocation scheme.

Owner-occupied housing:

The State supports owner-occupied housing by guaranteeing mortgages and granting interest subsidies for the purchase of owner-occupied homes. The Housing Fund of Finland can grant interest subsidies for the construction, renovation and acquisition of apartments. 

Right-of-occupancy housing:

State-subsidised right-of-occupancy apartments are owned by municipalities, non-profit corporations and right-of-occupancy associations.

  • Right-of-occupancy housing (environment.fi)

The State supports renovation with interest subsidies. Interest subsidy loans can be granted for the renovation of rented apartments and right-of-occupancy or housing company buildings.


The grants financed directly from the national budget include housing and construction grants regarding renovation, energy efficiency and health hazards, as well as investment support for special groups to enhance the housing conditions of different population groups. Grants are awarded by municipalities, ARA or the State Treasury, depending on the grant type.

Grants can also be awarded for the construction of infrastructure in a new neighbourhood, the deconstruction costs of a rental Arava building, the development of residential areas and housing consultation services

Published 2013-10-23 at 12:56, updated 2015-07-16 at 15:11