The proposal: Swedes should borrow even more

Published 4 November 2024 at 09.49

Economy. A new investigation by the macro-supervisory committee proposes that the mortgage ceiling be raised to 90 percent and that the stricter amortization requirement, introduced in 2018, be abolished.

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Instead, it is proposed a limitation of the amortization requirement to 1 percent of the loan down to 50 percent of the loan size.

The inquiry also recommends that a debt ratio ceiling be introduced at 550 percent, which means that borrowers can have debts equal to 5.5 times their gross income .

Peter Englund, chairman of the macro-supervisory committee, commented on the proposals at a press conference on Monday.

– Regarding the amortization requirement, we think it is too strict. It places high demands on payments in the first few years. But we also think it is important to maintain a repayment culture. Loans must be repaid. But they do not need to be paid off as quickly as today, he said.

The investigator suggests a gradual introduction of the new rules. Today, around 3–6 percent of new loans over 550 percent can be accommodated within the proposed regulatory framework.