The purpose of the proposal is to make it easier to both take out and have a home loan by limiting the amortization requirement to one percent of the loan down to 50 percent of the loan’s size.
Today, the amortization requirement is 2 percent if the loan is over 70 percent of the value of your home.
But Erik Thedéen, Governor of Sweden’s Riksbank worries, just like other critics, that the proposal instead risks increasing Swedish indebtedness.
– I think it is worrying that a proposal is put forward that will lead to increased indebtedness. I think there should be considerable caution, says Erik Thedéen in Aktuellt.
The tightening in 2018 has served Sweden well
Erik Thedéen was involved in the introduction of the stricter amortization requirements in 2018 and believes that they have served Sweden well.
– Indebtedness has then been dampened due to these rules, I think that has basically been good. Does that mean you can’t change anything? Probably not.
Thedéen himself admits that he has not yet read the report, but says that his input is that if new regulations risk increasing indebtedness, convincing arguments are required to ensure that they do not also increase the risks for the Swedish economy.
– There is always reason to think about this type of regulation, but there are also significant risks of changing something that has now actually settled with the Swedish people, says Thedéen.