Since autumn 2021, both fixed and variable interest rates have more than tripled.
The credit information company UC has calculated how roughly 17,000 of the country’s condominium associations, with over one million apartments, are affected when the associations’ loans end up at new interest rates.
An interest rate increase of two percentage points means that 71 percent of households can count on the fees to be increased by 5–20 percent. For every twentieth household, the fee increase will be at least 40 percent, according to UC.
Should the interest rate increase be three percentage points, 46 percent of households can count on a higher fee of 15–40 percent. At least a 40 percent fee increase then applies to 12 percent of households.
Residents in young associations (built in 2018 or later) are affected to a much greater extent by fee increases of at least 40 percent, according to UC.
“Approximately half of all Swedish households that live in a condominium have an association with relatively low indebtedness. The other half, just over half a million households, live in associations with medium to very high indebtedness,” says Stephane Hedman, responsible for UC Bostad , in a press release.
“We observe regional differences, but overall it can be said that the pattern is similar in, for example, the metropolitan regions,” she continues.
Approximately 60 percent of housing associations have loans with a term of less than three years, points out UC.