SD pushes for discontinued amortization requirement

“It affects young adults and single people to a greater extent than other groups,” writes SD’s economic policy spokesperson Oscar Sjöstedt, among others.

The second amortization requirement was introduced in March 2018.

– We think it is unfortunate because it knocks the legs away for people who get stuck in various ways, says Sjöstedt further to the Altinget.

This means that mortgage borrowers who take out new loans that exceed 4.5 times gross annual income must repay an extra 1 percentage point per year, in addition to the repayment rate of 1-2 per cent as stated in the first repayment requirement.

The government has decided that the amortization requirement on housing loans must be investigated. National Economist John Hassler is part of the committee that will review whether the regulations can be designed in a more effective way.

A canceled amortization requirement was one of the Moderates’ election promises. Both the Financial Supervisory Authority and the Riksbank have been critical of an abandoned requirement.

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