The tightened amortization requirement for mortgage borrowers is being abolished and the mortgage ceiling is being raised from 85 to 90 percent. These are some of the proposals in an investigation that will be presented next week, according to Dagens Nyheter.
Economics professor Peter Englund has since last spring led a committee that has been tasked with reviewing, among other things, the Financial Supervisory Authority's rules on amortization requirements and mortgage ceilings, i.e. how large a proportion of a home purchase that may be financed with a mortgage.
The current amortization requirements were introduced in two stages starting in 2016 to counteract excessive indebtedness among Swedish households. Critics have, however, argued that the requirements do more harm than good and place an unreasonably large burden on, above all, first-time buyers.
According to information to DN, the amortization requirement will, however, remain in some form after pressure from the Financial Supervisory Authority and the Swedish Central Bank, which, according to the newspaper, have had a significant influence on the investigation's work.
