Swedish amortization rules: why you may repay 3% a year
A SEK 3.4 million loan and a SEK 600,000 household income mean SEK 102,000 a year in amortization. Without the income rule it would be SEK 68,000.
If you borrow SEK 3,400,000 for a SEK 4,000,000 home and your household earns SEK 600,000 a year, you must pay off 3% a year. That is SEK 102,000 a year, or SEK 8,500 a month.
The loan size gives 2%, and your income adds 1%. On 5 February 2026 the Swedish government proposed removing the income rule from 1 April 2026.
The three rules today
The amortization rules ("amorteringskrav") from Sweden's Financial Supervisory Authority ("Finansinspektionen") have applied to new mortgages since 1 June 2016. A stricter rule ("skärpt amorteringskrav") was added on 1 March 2018.
| Rule | Applies when | Amortization per year |
|---|---|---|
| High loan-to-value | The loan is above 70% of the home's value | 2% of the loan |
| Medium loan-to-value | The loan is above 50% and at most 70% | 1% of the loan |
| Stricter rule | Mortgages exceed 4.5 times gross income | 1% extra |
Below 50% loan-to-value there is no amortization requirement. The most you can be required to pay off is therefore 3% a year.
The example step by step
The home costs SEK 4,000,000. You borrow 85%, which is SEK 3,400,000.
- The loan-to-value ratio is 85%. That is above 70, so the rule is 2%: SEK 68,000 a year.
- Household gross income is SEK 600,000. 4.5 times that is SEK 2,700,000. The loan of SEK 3,400,000 is higher, so the stricter rule applies. That adds SEK 34,000.
- The total is SEK 102,000 a year, or SEK 8,500 a month.
With an income of just over SEK 756,000 a year, about SEK 63,000 a month, the loan would have stayed below the line. Amortization would then have been SEK 5,667 a month.
Amortization is not a cost like interest
Amortization reduces your debt. The money stays in your home. But you cannot use it for anything else, and it affects how much the bank will lend you. In the bank's "money left to live on" calculation ("kvar att leva på-kalkyl"), amortization counts as a monthly cost.
How the requirement falls
The loan-to-value ratio is measured against the home's value when you took the loan. Once you have paid the loan down below 70% of that value, the requirement drops from 2% to 1%.
If your home has gone up in value, you can have it valued again. You may do that once every five years. With the new value your loan-to-value ratio can fall, and amortization with it.
If you run into trouble, for example through illness or unemployment, the bank can grant a temporary exemption from amortization for special reasons. Contact the bank before you miss a payment. More answers on amortization and mortgages are in the FAQ.
The proposal of 5 February 2026
On 5 February 2026 the government sent a bill to parliament. It proposes:
- removing the stricter amortization rule,
- raising the loan-to-value cap ("bolånetak") from 85% to 90% when you buy a home,
- capping new top-up loans at 80% of the home's value.
The rules would move into a new law and apply from 1 April 2026. Parliament will decide in spring 2026.
In the example, amortization would fall from 102,000 to SEK 68,000 a year. That is SEK 34,000, or SEK 2,833 a month, left in the household budget.
The two rules based on loan-to-value stay in the proposal.
What you can do now
- Buying now? Plan for 3% if the loan is above 4.5 times your income. A budget that copes with that will also cope with lower amortization later.
- Already paying the stricter rule? The government's press release does not say how existing loans will be handled. Ask your bank what applies to you if the law passes.
- Close to a threshold? A loan just above 70% can drop below the line with an extra payment. That can halve the loan-to-value part of the requirement.
Sources
- Finansinspektionen: FFFS 2016:16 on amortization of loans secured on a home (Swedish)
- Finansinspektionen: The Swedish mortgage market, April 2025 (Swedish)
- Riksbank: Credit assessment for mortgages, staff memo June 2024 (Swedish)
- Government Offices: The government moves ahead with new mortgage rules, 5 February 2026 (Swedish)
- Government Offices: Bill 2025/26:119 on macroprudential policy (Swedish)
This content is general information, not financial or legal advice. Bolån Radar collects data from banks and authorities and cannot guarantee that it is complete or free of errors. Talk to your bank or an adviser before you decide.