Housing costs for which allowance can be paid

Kela pays housing allowance on the basis of certain housing costs. Of the housing costs, at the most the maximum amount of acceptable housing costs is taken into account, and this amount varies according to place of residence.

You can be paid housing allowance for pensioners towards the housing costs for your permanent home in Finland.

Rental home

For rental and subleased rental accommodation, Kela takes the rent into account as housing cost. If water and heating is not included in the rent, Kela takes them into account on the basis of the fixed charges. However, a fixed water charge Kela takes into account as housing cost as such.

If you have rented out part of the home to a sub-tenant, Kela will only take into account that part of the housing costs that corresponds to the part of the home you yourself are occupying.

Right-of-occupancy or partial-ownership home

For right-of-occupancy and partial-ownership homes Kela accepts as housing costs

  • maintenance charge or rent
  • water charges
  • interest on loans for acquisition of the right-of-occupancy or partial-ownership home.

Residential care home

If you live in a residential care home for the elderly and your rent includes service charges, Kela will only take into account the rent.

If you do not pay rent for the residential care home, but a service charge, Kela takes into account only an itemised part of the charge allocated for housing costs.

Unit in a housing cooperative

For a unit in a housing cooperative Kela takes into account as housing costs

  • maintenance charge and separate water charge payable in connection with the maintenance charge
  • interest on loan for acquisition of the home.

If water and heating is not included in the maintenance charge and no separate fixed water charge is paid, Kela will compensate for them on the basis of average costs.

Single-family home

Kela calculates your housing costs on the basis of average costs for heating, water and maintenance and repair.

For single-family homes the housing costs also include

  • ground rent
  • interest on loan for acquisition and repair of the home.

Interest on housing loans

If you have taken out a loan to purchase or repair your primary home (unit in a housing cooperative or a single-family home), the interest due on your loans is accepted as housing costs. This applies also to the interest on loans taken out to pay a right-of-occupancy or partial-ownership fee.