Frequently Asked Questions - New construction
Get answers to the most common questions about Swedish mortgages and home buying. From understanding loan-to-value ratios and amortization rules to navigating the bidding process – find the information you need to make confident decisions.
How do owner-occupied apartments work?
An owner-occupied apartment ("ägarlägenhet") means you own the apartment itself as a property – unlike co-ops ("bostadsrätter") where you own a share in an association. You get title registration ("lagfart") and pay registration fees ("stämpelskatt") and mortgage deeds ("pantbrev") just like for a house. Owner-occupied apartments ("ägarlägenheter") are found mainly in new construction ("nyproduktion") and mean more freedom but also more responsibility for maintenance. There's still a joint property association ("samfällighetsförening") for common areas that you pay a fee to. Most housing associations ("bostadsrättsföreningar") don't approve legal entities as members.
How does buying new construction differ from existing homes in Sweden?
With new construction ("nyproduktion"), you sign a preliminary agreement ("förhandsavtal") long before move-in and pay an advance ("förskottsbetalning") (protected by guarantee ("förskottsgaranti")). You need a loan promise ("lånelöfte") valid long enough, and the bank does final assessment closer to handover ("tillträde"). The price is usually fixed but you can choose options ("tillval") that affect the final price ("slutpris"). You get a two-year warranty ("tvåårsgaranti") on construction work and ten years on structure. The risk is delays or cancellation. Between contract signing and handover ("tillträde") (often 1-3 years), keep in touch with developer ("byggherren") about progress.