Easier to buy a Swedish home in 2026

Last summer, the Swedish government proposed a relaxation of mortgage rules that will also make it easier for first-time buyers to enter the property market. On December 18^th, 2025, they announced that they are moving forward with their proposals which are due to come into force on April 1, 2026, and can be summarised as follows:

1. The mortgage ceiling is being raised

The mortgage ceiling will be raised from 85 percent to 90 percent (Loan to value ratio). This means that you can borrow up to 90 percent of the value of the home and that the required cash deposit will be reduced from 15 to 10 percent.

2. Relaxation of the amortization (repayment) requirement

A stricter requirement introduced in 2018 meant that households with loans over 4.5 times their annual income needed to amortize an additional 1 percent per year. That requirement will now disappear. However, the usual amortization requirement of 1-2 percent, depending on how much you have borrowed in relation to the value of the home, remains.

3. Lower limit for extending a mortgage

The limit for how much you can extend your mortgage, for example to do renovations, will be lowered from 85 percent to 80 percent of the home’s value.

4. Revaluation every five years

Homes will only be revalued for mortgage purposes every five years, calculated from the purchase or the most recent revaluation. This will apply when you want to extend your mortgage, lower the amortization or make other changes based on the value of the home. The purpose is to avoid overborrowing that can result from temporarily rising house prices.

What does the government hope to achieve with the proposed changes?

Arguably the following:
– To help more people afford homes and enter the property market.
– To support individuals looking to buy larger properties, such as growing families.
– To reduce the financial burden on households by lowering monthly costs for some borrowers.

Reactions to the proposals

The proposals have been supported by builders and households but met with skepticism from financial watchdogs concerned about stability.

What effect will these changes have on property prices?

The proposed relaxation of mortgage rules combined with lower interest rates is expected to result in increased activity on the property market and a boost in market prices. This could be a very interesting time for those who are new in Sweden and interested in buying a home.

Expert independent advice on property purchase

We help internationals to find and buy their dream home in Sweden. Our homefinding service offers essential insight on local property markets and the Swedish buying and selling processes, helping internationals avoid expensive mistakes, particularly when uncertain about long-term plans. From mortgages to taxes and hidden costs, we guide internationals through the entire process of finding and securing the right property. Email us on info@relocatetosweden for more information about this service.

Photo: Doris Beling/Folio/imagebank.sweden.se

Relocate to Sweden provides expert advice and hands-on help for companies recruiting internationally or transferring staff to Sweden. We help your international recruits with the entire relocation process including immigration, home finding, tax consultancy, registration with Swedish authorities, schools, health care and intercultural training. We also provide private relocation services. Email us at info@relocatetosweden.com or call us on +46 8 361011 if you would like help. You can also read more about our relocation services at www.relocatetosweden.com or follow us on social media for tips and advice.