The Government and The Sweden Democrats want to raise the mortgage ceiling from 85 percent to 90 percent of the property's value. This means that the own contribution does not need to be as large when buying a home as it is today.
According to the Government, the raised ceiling will facilitate young people's entry into the housing market. The hope is also that fewer will take expensive quick loans when buying a home.
It is fundamentally healthy to own your home, but it is unhealthy to have quick loans. This aims to be able to switch down quick loans and borrow more with the home as its security, says Niklas Wykman at a press conference.
Högre priser
According to Wykman, the proposal may lead to rising housing prices in the short term.
But in the long term, it may lead to a greater supply, he says.
In addition to a raised mortgage ceiling, the Tidö parties also propose that the amortization requirements be eased.
The basic requirement, which means a one percent amortization for loans between 50 and 70 percent of the property's value and two percent for loans over 70 percent, remains.
But the tightened amortization requirement introduced in 2018 will be abolished. This means that households that have mortgages that are larger than 4.5 times the gross income must amortize an additional one percent, i.e. a total of three percent.
These proposed changes lower the thresholds to the housing market and release several thousand kronor per month for Swedish households, says Minister for Infrastructure and Housing Andreas Carlson (KD).
”Inte skena iväg”
Both the Financial Supervisory Authority and the Swedish Central Bank have been critical of changing the rules, partly because they have seen a risk that Swedish households will become even more indebted. Something that can affect financial stability.
According to Niklas Wykman, the goal of the new proposals is to "preserve a sound amortization culture, without building unnecessary obstacles".
One needs different types of rules to ensure that debt does not get out of hand in a way that is unsustainable for households and the economy, he says and continues:
Our starting point is that one should pay back one's debts, a loan is a loan.
The new rules are proposed to come into force on April 1, 2026.
The Government and The Sweden Democrats propose that:
the first amortization requirement remains the same, i.e. continued requirement for a one percent amortization for loans between 50 and 70 percent of the property's value, and two percent amortization for loans over 70 percent of the value
the tightened amortization requirement is abolished, which states that households that have mortgages that are larger than 4.5 times the gross income must amortize an additional one percent in addition to the first amortization requirement
the mortgage ceiling is raised from 85 to 90 percent, which means that the own contribution does not need to be as large as today
additional borrowing is limited to 80 percent of the property's market value
revaluation of the home, with the aim of expanding the loan space, will only be possible every fifth year
today, the Financial Supervisory Authority announces regulations on mortgage ceilings and amortization. The Government proposes that this responsibility be moved from FI and instead regulated in a new law.
