Swedish Government Proposes Easing Mortgage Amortization Rules

The Swedish government is set to propose easing mortgage amortization requirements next week, as disclosed by Finance Market Minister Niklas Wykman in an interview with Ekot. However, there will be no pause in amortization, contrary to previous promises by the Moderate Party (M).

"I think it's wise," says Frida Bratt, a savings economist.

The Finance Market Minister does not believe that the Moderate Party is breaking an election promise by not implementing an amortization pause. Instead, they plan to propose changes that adjust and ease the amortization requirements.

"As long as I am responsible, we will never have a situation where we compromise financial stability or abandon an amortization culture," Niklas Wykman tells Ekot.

"Fundamentally, one should repay the loans they have taken, but it seems that the side effects were too strong for certain groups, such as entering the housing market and starting a family."

"Sound Fundamental Principle"

In Sweden, there has been a lack of amortization culture at times, but now we have developed one, according to Frida Bratt, a savings economist at Nordnet.

"It is a sound fundamental principle that should be upheld, that loans taken should indeed be repaid," she says.

However, Bratt believes that some form of relief is beneficial. The exact intentions of the government are not yet known. According to Bratt, it could involve the removal of the stricter amortization requirement for mortgage borrowers introduced in 2018.