Mortgage ceiling raised – could result in a “small” price increase

The government and the Sweden Democrats want to abolish the stricter amortization requirement and raise the mortgage ceiling from 85 to 90 percent, it was announced at a press conference on Tuesday. “Initially, we may see a small increase in housing prices,” says Niklas Wykman (M).

The proposed changes were presented by Financial Markets Minister Niklas Wykman (M) and representatives from other regional parties at a press conference on Tuesday.

According to the proposal, the first amortization requirement from 2016, with a requirement for 1 percent amortization for loans between 50 and 70 percent of the home’s value, and 2 percent amortization for loans over 70 percent of the home’s value, will remain.