Money Saving Tips: How To Get The Best Mortgage Deal In Sweden

Not only is mortgage a substantial financial commitment, but it also connects you more closely to both Sweden and the property you are buying from. This is our complete guide to understanding Swedish loans.

How do mortgages work in Sweden?

Your mortgage is a long-term loan that allows you to buy the property. The Swedish word is Bolan, which means ‘living loan’.

Since house prices are high, it is common to put a small amount of the total cost (your deposit or kontantinsats). Borrow the rest from a bank, which you repay in agreed instalments over some years.

In Sweden, the first step in the procedure is to get a loan, literally a ‘loan promise’. You can do this at the beginning of your home hunt. Or when you already have a specific property in mind that you want to buy.

It’s a good idea to start this procedure early. It can speed up getting a loan when you need the money, making sure you don’t lose the apartment of your dreams because the buying process is relatively fast-paced in Sweden.

But, when you apply for a lender’s note, you should already estimate your budget, as this will affect how much the bank will agree to lend.

What do I need to get a mortgage in Sweden?

You will need proof of Swedish personal and stable financial support in Sweden. And you will be subject to a credit check. This means that in general, you will need employment and tax payment dates in Sweden. While some banks are more merciful when we compare them to others. E.g., recent arrivals or self-employed.

If you still have Swedish student loan repayments, this will be taken into account when calculating your mortgage. Though student loans in other countries are not generally considered.

The loan you can take depends on how many of you are at home, your income (s), what type of employment you have (more secure than ever), your savings, and so on. The loan you have, and how much your monthly fee (average) will be when you are buying a property that belongs to the Housing Association (BRF) or the house’s size if you are moving to a separate house.

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