It was in 2016 that requirements were introduced which mean that certain households must repay their mortgages in order to counter excessive indebtedness among Swedish households.
At the beginning of next week, the conclusions from the investigation are expected to be presented, and according to sources for Dagens nyheter, the investigator will propose that the rules be relaxed.
On behalf of the government, economics professor Peter Englund has led a committee which, among other things, has been tasked with reviewing the Financial Supervisory Authority’s rules regarding how mortgages can be taken out and what amortization requirements exist.
The stricter amortization requirement can be abolished
According to DN’s information, the investigator must propose that the stricter amortization requirement be scrapped. The investigation is also expected to propose that the mortgage ceiling, i.e. how much of a home purchase can be financed through a mortgage, be raised from 85 to 90 percent. This means that mortgages can finance an additional five percent of the price of the home.
In that case, it would mean that it would be easier for people to borrow more money to buy a home.
According to the information, however, the regular amortization requirement, which was introduced in 2016, will remain in some form. The current amortization requirement means that you have to pay off two percent of the loan if you have a loan of more than 70 percent of the value of the home, and one percent if the loan corresponds to a value of between 50 and 70 percent. If you have borrowed less than 50 percent, you do not have to pay off your mortgage.
Peter Englund has not wanted to comment on the information, writes DN.