The unique combination of a strong economy and record low interest rates are contributing to household debt and housing prices is growing rapidly. In three years, housing prices have increased by over 40 per cent. FI see, therefore, that the vulnerabilities built up in the Swedish economy.
It writes the Swedish financial supervisory authority, FI, in its financial stability report on Wednesday.
”In order to further strengthen households ‘ resilience in a future crisis to FI, therefore, the sharpness amorteringskravet for new bolånetagare taking large loans relative to their income. The proposal will go out for consultation shortly,” said FI’s director general Erik Thedéen in a comment.
The proposal means that all new bolånetagare who borrow more than 4.5 times their gross income, i.e. income before taxes, to amortize the 1 percentage point more of the mortgage per year than what they needed to do in the day. This is in addition to already existing amorteringsregler.
Thus, the tightening of the amorteringskraven to the most vulnerable households, i.e. those who have large debts in relation both to their income and to property value, will amortize at least 3 per cent of the mortgage per year.
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