Mortgage Crash Course – Step 5: Loan Setup

Set up your loan the right way and understand the costs

Splitting Into Multiple Loans

Why Split: Split your mortgage into separate loans ("Dellån") with different rates and binding periods ("Bindningstider") for flexibility and risk management.
Common Setup: One variable portion for repayment flexibility, plus one or more fixed portions for stability.
Practical Tip: Keep the variable portion large enough to benefit from falling rates, but fix enough to survive a spike.
Rebalancing: When a binding period expires, renegotiate that portion. A natural opportunity to adjust your mix ("Räntemix").

3 Months (Variable / "Rörlig"): Lowest rate on average over time, but highest short-term risk. Allows additional amortization ("Extraamortering") without fee. Best with financial margin.
1–2 Years: Moderate stability at a moderate premium. Some predictability without long commitment.
3–5 Years: Solid protection against rate increases. Noticeable premium, but peace of mind.
5–10 Years: Maximum security. Best when rates are very low and expected to rise. Expensive to break early.

What It Means: Consolidate unsecured loans ("Blancolån"), credit card debt, or high-interest credit into your mortgage at a much lower rate.
Requirements: Combined loan can't exceed 90% Loan-to-Value Ratio ("Belåningsgrad") for new home purchases (raised from 85% in April 2026; 80% for supplementary loans / "Tilläggslån"). The bank assesses whether consolidation improves your financial position.
Benefits: Dramatically lower interest rate compared to 5–20% on unsecured debt. Simpler finances.
Watch Out: You're converting short-term debt to long-term debt secured against your home. Don't run up new debt after consolidating.

Mortgage Deed ("Pantbrev"): For owned land ("Fastighet") and leased land ("Tomträtt"): Creating new mortgage deeds costs 2% of the deed amount in stamp duty ("Stämpelskatt") plus a 375 SEK expedition fee ("Expeditionsavgift") per deed. Existing ones from previous owners transfer for free. Does not apply to apartments ("Bostadsrätt").
Title Registration ("Lagfart"): Only for houses/villas. Costs 1.5% in stamp duty ("Stämpelskatt") plus an 825 SEK expedition fee ("Expeditionsavgift"). Does not apply to apartments ("Bostadsrätt").
Apartments ("Bostadsrätt"): You're buying a share in the housing association ("Bostadsrättsförening"), not property. No title registration or stamp duty, but there may be a one-time association fee and a pledge registration fee ("Pantförskrivning") of a few hundred SEK each.
Budget Example: For a 4 million SEK house: down payment ("Kontantinsats") (10%+, lowered from 15% in April 2026), mortgage deeds ("Pantbrev"), title registration ("Lagfart"), and fees can total 130,000+ SEK beyond the purchase price.

Step 5 of 8