Cut with tool, reportedly, a bath from Finland (5)
I believe the answer is:
sauna
'bath from finland' is the definition.
(saunas are from Finland)
'cut with tool reportedly a' is the wordplay.
'cut with tool' becomes 'sawn' (cut with a saw).
'reportedly' shows a homophone (sound like).
'sawn' is a homophone of 'saun'.
'saun'+'a'='SAUNA'
(Other definitions for sauna that I've seen before include "Form of steam bath" , "Room for steam bath" , "Finnish-style bath" , "Steam-bath" , "A Scandinavian steam bath" .)