# Mortgage (Bolån)

*Swedish Financial Supervisory Authority regulations FFFS 2016:16 (amortization requirements)*

## Definition

A mortgage (bolån) is a loan secured against the property and the most common form of financing when buying a home in Sweden. Banks require at least a 15% cash down payment and conduct a thorough credit assessment including income, existing debts, living costs, and a stress-test interest rate (typically 6–7%) to ensure you can handle higher rates.

Most Swedish mortgages have variable rates or short fixed-rate periods (3 months to 5 years). Amortization requirements apply — at least 1% per year at loan-to-value ratios below 70% and at least 2% above 70%. Additional amortization is required if the debt-to-income ratio exceeds 4.5 times gross income. You can hold mortgages with multiple banks and should always compare rates and terms.

## Key points

- Requires at least 15% cash down payment — the rest can be mortgaged
- Credit assessment based on income, debts, and stress-test interest rate
- Amortization requirements: 1% at LTV below 70%, 2% above 70%
- Most borrowers choose variable rates or short fixed periods
- Always compare rates between banks — differences can be significant

## Practical tip

Start by getting a loan promise from your bank before you start looking for a home — it gives you a clear budget. Always negotiate the rate — banks' listed rates are rarely the best they can offer. Use mortgage calculators to compare banks.

## Legal basis

Swedish Financial Supervisory Authority regulations FFFS 2016:16 (amortization requirements)