Loan promise, loan-to-value cap and amortisation
How much you may borrow, how much of your own capital is required, and which amortisation rules apply after the legislative change of 1 April 2026.
Applies to: Sweden. Reviewed 2026-09-18.
Key takeaways
- From 1 April 2026 the loan-to-value cap and amortisation are set in the Act (2026:226) on limitation of housing credits instead of in Finansinspektionen regulations.
- The loan-to-value cap when buying a new home is 90 per cent of market value. For additional loans taken later the limit is 80 per cent.
- The stricter amortisation requirement of an extra 1 per cent for loans above 4.5 times gross yearly income has been removed.
- Households with mortgages above 70 per cent of the home value must amortise at least 2 per cent of the total credit amount per year.
The loan promise
A loan promise is the bank preliminary indication of how much you can borrow, based on income, existing loans, household size and a stress-test rate well above the rate you actually pay. It is time-limited and conditional on the home being accepted as security.
- The stress-test rate and the assumed cost of living differ between banks.
- A loan promise is not an approved loan. The bank reassesses the specific home.
- Several loan promises give you a negotiating position on the rate.
Loan-to-value cap and down payment
From 1 April 2026 the Act (2026:226) on limitation of housing credits applies. The loan-to-value cap when buying a new home is 90 per cent of the market value, which in practice means a down payment of at least 10 per cent. For additional loans taken later, the loan-to-value ratio may be at most 80 per cent.
Amortisation requirements
| Loan-to-value | Amortisation per year |
|---|---|
| Above 70 % of the home value | At least 2 % of the total credit amount |
| Above 50 % up to 70 % | At least 1 % of the total credit amount |
| 50 % or below | No statutory requirement. The bank may still require amortisation. |
The stricter amortisation requirement, an extra at least 1 per cent for households with mortgages above 4.5 times gross yearly income, was removed on 1 April 2026.
The rate and how you split the loan
The rate is set individually and negotiated. We publish no rate levels here, because a figure in an article goes out of date quickly. Use the banks current list and average rates, and always also model a higher-rate scenario.
- A variable rate changes often, usually every three months, and follows the market faster.
- A fixed rate gives predictability but can cost an early redemption charge if you repay before term.
- Many split the loan into parts with different fixed periods to spread the risk.
Questions to ask
- What stress-test rate does the bank use when assessing my application?
- What is my actual rate after discount, and how long does the discount last?
- How does the bank suggest I split the loan between variable and fixed rates?
- What does it cost to redeem a fixed-rate loan early?
Red flags
- You calculate only on today rate and have no plan for a higher one.
- The down payment is borrowed in full as an unsecured loan without you costing that in.
- The loan promise is for a sum you cannot carry month to month, a loan promise is a ceiling, not a recommendation.
Sources
- FI repeals mortgage regulations – new law takes over (Finansinspektionen)
- New legislation to let more people own their home (Regeringskansliet)
- Government bill 2025/26:119 – Development of macroprudential policy (Sveriges riksdag)
- Konsumenternas – independent guidance on mortgages and insurance (Konsumenternas Bank- och finansbyrå)