Mortgages are a common way to finance the purchase of a home in Sweden. They are typically offered by banks and other financial institutions, and the terms and conditions of the loan will vary depending on the lender.
Key Facts
- Borrowing Range and Payment Period:
- Different mortgage providers in Sweden offer varying borrowing ranges and payment periods.
- The borrowing range can be between 10,000 SEK to 1,000,000 SEK, and the payment period can range from 1 to 20 years.
- Interest Rates:
- The interest rates for mortgages in Sweden can vary depending on the mortgage provider and the specific terms of the loan.
- The interest rates can range from 2.9% to 26%.
- Loan Application Process:
- To apply for a mortgage in Sweden, you will need a Swedish personal identity number.
- The financial institution will check your finances and determine the amount you can borrow for the mortgage.
- Mortgage Value and Down Payment:
- Applicants with a Swedish identity number can borrow up to 85% of the mortgage value of the property.
- The mortgage value can be paid in two installments, with 75% as the first mortgage and 10% as the second mortgage.
- Additionally, there is an additional deposit of 15% of the overall property price.
- Monthly Costs:
- The overall cost of owning a property in Sweden is divided into four parts: mortgage loan and interest, amortization, housing association fee, and utility costs.
- Amortization is an additional cost paid on a monthly basis, usually around 2% of the loan amount.
- Utility costs include heating, electricity, wi-fi package, and free water.
- Financing Options:
- Housing mortgage loans with a low interest rate are a common financing option in Sweden, but they require putting up the house as collateral.
- Loans without security, known as “blancolån,” are available with a higher interest rate but do not require collateral.
- Personal/payday loans should be avoided due to their high interest rates.
Borrowing Range and Payment Period
Different mortgage providers in Sweden offer varying borrowing ranges and payment periods. The borrowing range can be between 10,000 SEK to 1,000,000 SEK, and the payment period can range from 1 to 20 years.
Interest Rates
The interest rates for mortgages in Sweden can vary depending on the mortgage provider and the specific terms of the loan. The interest rates can range from 2.9% to 26%.
Loan Application Process
To apply for a mortgage in Sweden, you will need a Swedish personal identity number. The financial institution will check your finances and determine the amount you can borrow for the mortgage.
Mortgage Value and Down Payment
Applicants with a Swedish identity number can borrow up to 85% of the mortgage value of the property. The mortgage value can be paid in two installments, with 75% as the first mortgage and 10% as the second mortgage. Additionally, there is an additional deposit of 15% of the overall property price.
Monthly Costs
The overall cost of owning a property in Sweden is divided into four parts: mortgage loan and interest, amortization, housing association fee, and utility costs. Amortization is an additional cost paid on a monthly basis, usually around 2% of the loan amount. Utility costs include heating, electricity, wi-fi package, and free water.
Financing Options
There are several different financing options available for mortgages in Sweden.
-
Housing mortgage loans
with a low interest rate are a common financing option, but they require putting up the house as collateral.
-
Loans without security
, known as “blancolån,” are available with a higher interest rate but do not require collateral.
-
Personal/payday loans
should be avoided due to their high interest rates.
Sources
- The Guide to A Mortgage in Sweden – Living in Sweden
- Taking a loan for a house in Sweden? Here’s a quick overview – Swedes in the States
- How to get a mortgage in Sweden – The Newbie Guide to Sweden
FAQs
What is a mortgage?
A mortgage is a loan that is used to finance the purchase of a home. The loan is secured by the property itself, which means that the lender can take possession of the property if the borrower defaults on the loan.
How do I apply for a mortgage in Sweden?
To apply for a mortgage in Sweden, you will need to contact a bank or other financial institution. The lender will assess your financial situation and determine how much you can borrow. You will also need to provide a down payment, which is typically 15% of the purchase price.
What are the interest rates on mortgages in Sweden?
The interest rates on mortgages in Sweden can vary depending on the lender and the specific terms of the loan. However, the average interest rate on a 10-year fixed-rate mortgage is around 2%.
How long does it take to get a mortgage in Sweden?
The time it takes to get a mortgage in Sweden can vary depending on the lender and the complexity of your application. However, you can typically expect the process to take around 2-4 weeks.
What are the closing costs on a mortgage in Sweden?
The closing costs on a mortgage in Sweden can vary depending on the lender and the specific terms of the loan. However, you can typically expect to pay around 2-5% of the purchase price in closing costs.
Can I get a mortgage in Sweden if I am not a Swedish citizen?
Yes, you can get a mortgage in Sweden if you are not a Swedish citizen. However, you will need to have a Swedish personal identity number and a stable income.
What are the different types of mortgages available in Sweden?
There are two main types of mortgages available in Sweden: fixed-rate mortgages and variable-rate mortgages. Fixed-rate mortgages have a fixed interest rate for the entire term of the loan, while variable-rate mortgages have an interest rate that can fluctuate over time.