New mortgage rules to reduce thresholds in the housing market
Published:
The Riksdag has voted in favour of the Government’s proposals on changed amortisation requirements and mortgage caps.
The proposals will mean that the mortgage cap will be raised from 85 to 90 per cent of the market value of the home when buying a new home, while the possibility of expanding a mortgage with a supplementary loan will be limited to 80 per cent of the market value of the home. Supplementary loans can be used, for example, to renovate a home.
According to the proposals, the stricter amortisation requirement will also be removed, that is the requirement for further amortisation of at least 1 per cent provided the borrower’s total home loan exceeds 4.5 times their gross annual income. The original amortisation requirement, which is governed by the loan-to-value ratio, will remain in place.
The proposals will also mean that a new law on the limitation of housing loans will replace the Swedish Financial Supervisory Authority’s provisions and general advice on amortisation requirements and mortgage caps.
The purpose of the proposals is to reduce the thresholds in the housing market and to enable more people to own their homes.
The new act and legislative amendments will come into force on 1 April 2026.
Committee report (In Swedish): Utveckling av makrotillsynsområdet (FiU36)