New mortgage rules are set to take effect in Sweden, making it easier for young first-time buyers to borrow money for housing. The Swedish parliament is expected to vote on the proposal, but this is reportedly a formality. According to the government's proposal, the rules will come into force on April 1.
The loan-to-value ceiling will be raised from 85% to 90% of a property's value. 5 times their gross income. The aim of the new rules is to facilitate young people buying their first home.
it might be a net zero outcome
However, the effect could reportedly lead to more expensive housing, according to Christina Sahlberg, a private economist at Skandia, who said it might be a net zero outcome.