New mortgage rules could bring more activity to the housing market

On April 1, 2026, new mortgage rules will come into effect in Sweden. In short, the changes mean that households will have somewhat greater opportunities to borrow for housing, while certain limitations will be introduced regarding how borrowing can be increased afterwards. Below are the main features of the new rules and how they may affect the economy and the housing market.

Households will be able to borrow more

The so-called additional amortization requirement will be removed. Previously, households borrowing more than 4.5 times their gross annual income had to amortize an extra one percentage point per year. When this requirement disappears, the ongoing cost for some mortgage holders will decrease, which in practice may increase households’ borrowing capacity.

Lower down payment may increase demand

The mortgage cap will be raised from 85 to 90 percent of the property’s value. This means the required down payment will be reduced from 15 to 10 percent. For many households, not least first-time buyers, this could make it easier to enter the housing market.

More young buyers could strengthen the construction sector

The new rules are expected to particularly facilitate younger households buying their first home. A larger group of potential buyers in turn creates better conditions for new housing development and residential construction, which is positive for the construction and real estate sectors.

Some restrictions will also be introduced

At the same time, a few more restrictive rules will be implemented. Additional loans, for example for renovations, may not exceed 80 percent of the property’s value. In addition, a new rule will limit property revaluations for the purpose of increasing a mortgage to once every five years.

What impact could this have?

Several analysts believe the regulatory changes could contribute to rising housing prices as households gain greater borrowing capacity. In Norway, prices increased by just over three percent within a few months after a similar change.

For savers, a more active housing market and a stronger construction sector also create more investment opportunities. On the SaveLend platform, you can invest in real estate projects and earn returns from this type of financing, meaning developments in the housing market can also become an opportunity for your savings.

If you have any questions or would like to discuss this further, please do not hesitate to contact our support team – we are here to help.