Sweden to abolish strict loan repayment rule to boost homeownership

Posted on June 18, 2025   |  

Stricter amortization rules introduced in 2018—which required households to pay an extra 1% on loans exceeding 450% of gross income—are being abolished.

The basic amortization rules remain unchanged, 1% repayment for loans between 50–70% of the home's value and 2% repayment for loans above 70% of the home’s value.

The government clarified that while relief is being proposed, there will be no complete pause in amortization, despite earlier election promises by the Moderates.

The decision aims to support responsible borrowing while removing unnecessary financial barriers.

The mortgage ceiling will increase from 85% to 90%, reducing the required down payment for homebuyers.

This change is designed to help young people and high-income earners who lack upfront capital access the housing market.

The overall goal is to make homeownership more accessible without compromising financial responsibility.