The cabinet security chief told Finnish media that Mr Sipila`s offer last September had made the house "too public" for any family to stay there.
The prime minister had said everyone should "look in the mirror and ask how we can help" new arrivals in Finland.
However, anti-immigrant sentiment has hardened in recent months.
One report by Iltalehti newspaper said there were concerns that the arrival of asylum seekers at the house in Kempele in northern Finland would attract anti-immigration protesters.
Some 32,000 people applied for asylum in Finland in 2015, double the expected number, and the Finnish government has predicted 20,000 will be deported.
Migrant crisis: Finland PM Sipila halts plan to host refugees
01 February 2016
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Finnish Prime Minister Juha Sipila has put on hold a plan to open his country home to a family of asylum seekers, apparently for security reasons.
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