A SEK 1.5m Swedish cottage: borrow 90% on it, 80% on your house
With a 90% loan, a SEK 1,500,000 cottage costs about SEK 5,400 a month in interest and amortization at 2.8%. A top-up on your house stops at 80%.
You have found a summer cottage for SEK 1,500,000. A Swedish bank can finance it in two ways: with a new loan secured on the cottage, or by raising the loan on the home you already live in.
Since 1 April 2026, different caps apply to the two routes. A new loan on the cottage can be 90%. If you raise the loan on your home, it can reach at most 80% of that home's value.
The rules cover the cottage too
The new law on limits for home loans covers loans for a home in Sweden secured on the property. The only exception is farm units. When the Financial Supervisory Authority ("Finansinspektionen") introduced the amortization rules in 2016, it explicitly included holiday homes ("fritidshus"), and those rules have now moved into the law.
The loan-to-value ratio ("belåningsgrad") is calculated for each home separately. The loans secured on the cottage decide the cottage's loan-to-value ratio.
Route 1: a new mortgage on the cottage
Both Handelsbanken and Nordea say you can normally borrow up to 90% of a holiday home's value. You pay the rest as a down payment ("kontantinsats").
| Amount | |
|---|---|
| Price | SEK 1,500,000 |
| Down payment, 10% | SEK 150,000 |
| Loan, 90% | SEK 1,350,000 |
| Interest per month at 2.8% | SEK 3,150 |
| Amortization per month, 2% | SEK 2,250 |
The four big banks' average variable mortgage rates were between 2.72% and 2.82% in April 2026, according to Bolån Radar's data. That is why the example uses 2.8%. The loan is above 70% of the value, so you must pay off 2% of it a year.
Our personalized rates show the rate you can get without negotiating at your own loan-to-value ratio.
Route 2: raise the loan on your home
If you have paid down the loan on the home you live in, you can use it as security. But since 1 April 2026, a top-up loan can only take the loan-to-value ratio up to 80%. Nordea says you can raise your mortgage up to 80% of the value of your permanent home. Handelsbanken says the same.
Say your house was worth SEK 4,000,000 when you bought it and you have SEK 2,400,000 left on the loan. That is 60%.
The cap is SEK 3,200,000, so you can borrow SEK 800,000 more. That does not cover the whole cottage. The rest must be borrowed against the cottage or paid in cash.
Two things to keep in mind:
- The bank uses your house's value from when you bought it. As a rule, it can use a new valuation only five years after the purchase.
- When the house's loan-to-value ratio goes above 70%, the amortization rule rises from 1% to 2% of the loan a year.
The bank's calculation covers both homes
Two homes mean two sets of costs. The Financial Supervisory Authority describes how banks calculate: they subtract interest and amortization on the household's loans and the running costs of the home from its income.
The bank also uses a higher rate than today's. Ask how the bank counts the cottage's running costs. Electricity, insurance, water and waste collection cost money even when you are not there.
Cottages that are hard to borrow against
Not every holiday home is equally easy to finance. Nordea gives two examples:
- Leased land ("arrendetomt"). If the cottage stands on leased land, a loan can be harder to get.
- Abroad. Swedish banks usually do not accept a holiday home abroad as security.
Handelsbanken says a holiday home of good standard in a sought-after location can almost always be financed up to 90%. A basic cottage in a remote spot may therefore get a lower valuation.
Next steps
- Work out the cottage's monthly cost, with interest, amortization and running costs.
- Find out your house's loan-to-value ratio, based on its value when you bought it.
- Ask for a pre-approval and whether the cottage can be financed up to 90%.
- Check whether the plot is owned or leased before you bid.
Sources
- Act (2026:226) on limits for home loans, Riksdag (in Swedish)
- Government bill 2025/26:119 on macroprudential policy, Riksdag (in Swedish)
- Decision memo on amortization rules 2016, Financial Supervisory Authority (in Swedish)
- The Swedish Mortgage Market 2025, Financial Supervisory Authority
- Buying a holiday home, Handelsbanken (in Swedish)
- Borrowing for a holiday home, Nordea (in Swedish)
- Historic average rates, Bolån Radar
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.