Swedish Mortgage Rules for Expats: What You Need to Know

Published by Lusa | March 2026

You've found an apartment in Sweden. Now you need a mortgage. The Swedish system has some features that differ from what you're used to, from mandatory amortization rules to a unique stress-test calculation. Here's a practical overview of everything you need to know.

The basics: how Swedish mortgages work

A Swedish mortgage is called bolån. The key rule: banks can lend a maximum of 85% of the property's value (loan-to-value, or LTV). That means you need at least 15% as a down payment, called kontantinsats.

For a bostadsrätt (BRF apartment) priced at 3 million SEK, you need at least 450,000 SEK in savings. This cannot be borrowed. Some buyers use savings, gifts from family, or equity from a previous property.

Interest-only mortgages were once common in Sweden, but mandatory amortization requirements introduced in 2016 (and tightened in 2018) changed the landscape. Most borrowers now pay down their mortgage gradually.

Amortization requirements (amorteringskrav)

Sweden has a two-tier mandatory amortization system:

There's an additional rule: if your total debt exceeds 4.5 times your gross annual income, you must add an extra 1% amortization on top of the above.

A concrete example: you buy for 3 million SEK, borrow 2.55 million (85% LTV), and earn 500,000 SEK per year. Your debt-to-income ratio is 5.1x (above 4.5x). You need to amortize 2% (for LTV above 70%) plus 1% (for high debt-to-income) = 3% per year. That's 76,500 SEK per year, or about 6,375 SEK per month, on top of your interest payments.

Interest rates in Sweden

Swedish mortgage rates come in two flavors: variable (rörlig ränta, typically 3-month terms) and fixed (bunden ränta, from 1 to 10 years). As of early 2026, variable rates are around 3-4%.

Most Swedes choose variable or short fixed terms (1-3 years). Historically, variable rates have been cheaper over time, but they carry more risk. The 2022-2024 rate increases caught many homeowners off guard.

The interest deduction (ränteavdrag). You can deduct 30% of your mortgage interest costs from your taxes, up to 100,000 SEK in interest per person per year. Above that threshold, the deduction drops to 21%. This effectively lowers your after-tax interest rate. For example, a 3.5% rate becomes roughly 2.45% after the deduction.

Can expats get a mortgage?

Yes, but with conditions. The typical requirements:

• •Swedish personal number (personnummer). This is essentially required. Without it, very few banks will consider your application.
• •Permanent employment in Sweden or equivalent stable income. Contract work or self-employment may require additional documentation.
• •Swedish tax residency. Banks want to see that you file taxes in Sweden.
• •Credit history. Sweden uses UC (Upplysningscentralen) for credit checks. If you're new to Sweden, you won't have a UC record, which can make the process slower. Some banks accept documentation from your home country instead.

Banks that are generally more accessible for expats include SBAB, Nordea, and Handelsbanken. It's worth contacting multiple banks since policies and flexibility vary.

What banks look at: the KALP calculation

Swedish banks use a calculation called KALP (kvar att leva på, meaning "left to live on") to determine how much you can borrow. It works like this:

Start with your gross monthly income. Subtract taxes, mortgage payments (stress-tested at a higher rate, typically 6-7%), mandatory amortization, the BRF's monthly fee (avgift), and standardized living expenses (based on household size). What's left is your KALP. If it's too low, the bank reduces the loan amount.

This means your BRF's monthly fee directly affects how much you can borrow. A higher avgift reduces your borrowing capacity. This is why it matters to know the real cost of the BRF, not just the current avgift. Use our calculator to model different scenarios.

The double loan: your mortgage and the BRF's debt

When you buy a bostadsrätt, you effectively take on two loans: your personal mortgage and your share of the BRF's collective debt. The BRF's loans are paid through the monthly fee, so you don't see a separate bill, but the economic effect is real.

If the BRF has high debt and interest rates rise, the monthly fee goes up. At the same time, your personal mortgage interest increases. You're exposed to interest rate changes twice over.

This is why analyzing the BRF's annual report is so important. Our complete BRF guide for expats explains what a BRF is and how the financial structure works. The annual report guide walks you through each section of the document.

No stamp duty on bostadsrätt

If you're coming from a country with stamp duty or transfer taxes on property purchases, here's good news: there is no stamp duty (lagfart) when buying a bostadsrätt. Stamp duty in Sweden applies to real property (houses, land) at 1.5% for individuals, but a bostadsrätt is technically a membership right in a cooperative, not property ownership.

You will, however, pay a fee for the mortgage deed (pantbrev) registration if a new one needs to be created. This is typically 2% of the pantbrev amount plus an administrative fee. In many cases, existing pantbrev from the previous owner can be transferred, reducing or eliminating this cost.

Practical tips for expat buyers

• •Get a pre-approval (lånelöfte) first. Before you start looking at apartments, get a written loan commitment from your bank. It's free, typically valid for 6 months, and tells you exactly how much you can bid.
• •Compare at least 3 banks. Interest rates, fees, and flexibility vary. Even small rate differences matter on a large loan.
• •Always analyze the BRF's annual report. The mäklare (real estate agent) provides this. Don't skip it because it's in Swedish. Our English guide makes it readable.
• •Budget for the full cost. Mortgage payment + amortization + avgift + home insurance + interest after tax deduction = your real monthly cost. Use our calculator to get the number.
• •Consider the BRF's financial health, not just the apartment. You're not just buying an apartment. You're joining a cooperative. If the cooperative is in financial trouble, you share that burden.

Also read our guide on BRF vs hyresrätt: which is right for you? if you're still deciding whether to buy or rent.

Lusa is a Swedish web tool for apartment buyers. The information on this page is based on Finansinspektionen (FI) regulations, publicly available bank terms, and Swedish tax law (Inkomstskattelagen). Nothing on this page constitutes financial advice.