How much down payment is required in Sweden and how does the bank calculate how much I can borrow?

You need at least 10% of the home's price as down payment ("kontantinsats") – banks cannot lend more than 90% of market value (raised from 85% since April 2026) ("marknadsvärde") (the mortgage cap ("bolånetak")). The bank does a KALP calculation ("KALP-kalkyl") where they take your income minus all fixed expenses, existing loans, and the new home's costs. They calculate with a stress rate ("stressränta") of 6-7% to ensure you can handle rate increases. If what's left after all expenses exceeds the bank's minimum requirement, your loan can be approved.