Mortgages in Sweden: A Comprehensive Guide + Mortgage Calculator

Updated October 2022 | Written By Johanneskallman

If you're looking for a mortgage in Sweden, you've come to the right place. In this comprehensive guide, we'll teach you everything you need to know about mortgages in Sweden – including how to find the best mortgage rates and how use our mortgage calculator to understand the payment process!

On top of that, we'll cover the top mortgage lenders in Sweden and compare them in order to find the best possible terms for you and your future endevours. Here is a preview of our top choices:

comboloan best mortgage in sweden

Comboloan

Comboloan has the best service out of any Swedish mortgage providers.

ordna bolån mortgage

Ordna

Ordna Bolån comes in at a close second with some of the best interest rates in Sweden.

lånekoll mortgage provider

Lånekoll

Lånekoll is another great choice with a slick and fast website.

Mortgage Calculator For Sweden

When you're trying to work out how much a mortgage will cost you, it can be helpful to use a mortgage calculator. This is a quick and easy way to see what different interest rates will cost you.

Simply enter the amount you want to borrow, the term of the mortgage and the interest rate below to find out you monthly payments.

year(s)

Your total monthly payment

Principal & Interest

How to Find the Best Mortgage Rates In Sweden

When you're looking for a mortgage in Sweden, it's important to compare different mortgage rates from different lenders to make sure you're getting the best deal. The interest rate on your mortgage will have a big impact on how much you end up paying back in total, so it's important to shop around.

There are a few websites that compare mortgage rates from different lenders in Sweden. This can be a helpful way to see what's available, but make sure you compare the same loan amount and term to get an accurate idea of the costs.

Below is the top 3 mortgage providers in Sweden that will make sure you get the best mortgage terms from every major Swedish bank. By applying for a mortgage using their service, you'll be able to recieve proposals as soon as within 24 hours - all for free.

The Top 3 Mortgage Providers In Sweden

comboloan best mortgage in sweden

Comboloan is our number #1 choice of mortgage providers in Sweden with their easy-to-navigate website and fast response time (sometimes even within a few hours).

9.5
Out of 10

Amount:

200 000 - 20 000 000 SEK

Interest Rate:

1.05% - 7.90%

Term:

30 - 50 years

ordna bolån mortgage

Comboloan is our number #2 choice of mortgage providers with some of the lowest interest rates on the list. 

9.4
Out of 10

Amount:

150 000 - 15 000 000 SEK

Interest Rate:

0.85% - 8.00%

Term:

Open for negotiation

lånekoll mortgage provider

Comboloan is our third choice of mortgage providers in Sweden with another reliable and fast response times.

9.2
Out of 10

Amount:

200 000 - 17 000 000 SEK

Interest Rate:

1.08% - 7.96%

Term:

Open for negotiation

How To Apply For A Loan/Mortgage In Sweden

The mortgage application process in Sweden is usually fairly straightforward. Once you've found the mortgage you want to apply for, you'll need to fill out an application form and provide some documentation, such as your ID, proof of income and bank statements.

The mortgage lender will then assess your application and, if approved, offer you a mortgage. It's important to remember that you're not obliged to accept the mortgage offer, so make sure you read the terms and conditions carefully before making a decision.

If you are looking for a smaller personal loan (up to 600 000 SEK) you can read more about the best personal loans to get in Sweden here.

How To Calculate Your Monthly Mortgage Costs

To calculate your monthly mortgage repayments, you'll need to know the following:

  • The loan amount: This is the total amount you're borrowing from the mortgage lender.
  • The interest rate: This is the percentage of the loan that you'll be charged in interest.
  • The term: This is the length of time you'll be making repayments on the mortgage.
  • The down payment: This is the upfront payment that you'll make when you take out the mortgage. It's usually a percentage of the loan amount, so the more you can afford to pay, the lower your monthly repayments will be.
  • The mortgage repayment frequency: This is how often you'll be making mortgage repayments. In Sweden, it's common to make monthly repayments.

To calculate your monthly mortgage repayments, simply multiply the loan amount by the interest rate, and then divide that number by the term.

For example, if you're borrowing 200,000 kronor at an interest rate of 0.75%, and you're looking to repay the mortgage over a period of 30 years, your monthly repayments would be approximately 600 kronor.

How To Calculate Your Down Payment

When you're looking for a mortgage, the interest rate is important, but it's not the only factor that will affect the cost of your loan. The terms of the mortgage (the length of time you'll be making repayments) and the size of your down payment will also play a role.

To calculate your down payment, you'll need to know the loan amount and the down payment percentage. For example, if you're looking at a 2,500,000 loan with a 20% down payment, you'll need to pay 500,000 upfront.

How Much Can You Borrow In Sweden?

As an applicant for a Swedish mortgage, you'll be able to borrow up to 85% of the value of the property.

The actual down payment would then reflect at least 15% of the property price.

For example, on a $100,000 mortgage loan, you may be able to borrow $85,000. The down payment in this case would be at least $15,000.

This mortgage loan-to-value (LTV) ratio is one of the most important factors that mortgage lenders use when assessing your application. Other factors that mortgage lenders will take into account include your income, employment history and credit score. Here is a general guideline to get a better understanding of how much you can actually borrow in Sweden:

Every borrower in Sweden can usually borrow 4.5 times their annual income.

For example, if you earn a salary of $50,000 per year, you could potentially borrow $225,000.

If you're self-employed or have a variable income, the mortgage lender will usually use an average of your earnings over the past two years to assess how much you can afford to borrow.

Do I Qualify for a Mortgage?

Mortgages are generally only available to people over the age of 18, and who have a good credit history. In Sweden, mortgage lenders will also usually require that you have a permanent job and earn a certain amount of money each month.

To get an idea of how much you could borrow, most mortgage lenders in Sweden offer a mortgage affordability calculator on their website. This will take into account your income and outgoings to give you an estimate of how much you could afford to borrow.

It's also worth noting that mortgage rates may be higher for people who are self-employed or have a poor credit history.

What Is A Mortgage?

what-is-mortgage-los-sweden

A mortgage is a loan that is used to purchase a property – usually a house or an apartment. The loan is then repaid over time, usually between 5 and 30 years.

The mortgage itself is a contract between the borrower and the lender, in which the borrower agrees to make regular payments (known as instalments) until the loan is paid off in full. If the borrower fails to make his or her payment, the lender may have the right to repossess the property. The property in itself acts as collateral.

Types of Mortgages

There are two main types of mortgage in Sweden:

  1. Variable rate mortgage: The interest rate on this type of mortgage can go up or down over time, depending on market conditions. This means that your monthly repayments could also increase or decrease.
  2. Fixed rate mortgage: As the name suggests, the interest rate on a fixed rate mortgage is set for a certain period of time – usually between two and five years. This means that your monthly repayments will stay the same during this time, even if interest rates go up or down.

Which type of mortgage is right for you will depend on your own personal circumstances. If you're planning on staying in your property for a long time, a fixed rate mortgage may be the best option to protect yourself against rising interest rates. However, if you think you may move soon or want the flexibility to make overpayments, a variable rate mortgage could be a better choice.

How to Find the Best Mortgage Rates

When you're looking for a mortgage in Sweden, it's important to compare different mortgage rates from different lenders to make sure you're getting the best deal. The interest rate on your mortgage will have a big impact on how much you end up paying back in total, so it's important to shop around.

There are a few different ways to compare mortgage rates:

  • Compare mortgage rates online: There are a few websites that compare mortgage rates from different lenders in Sweden. This can be a helpful way to see what's available, but make sure you compare the same loan amount and term to get an accurate idea of the costs.
  • Speak to a mortgage broker: A mortgage broker is a professional who can help you find the best mortgage for your needs and circumstances. They usually have access to mortgage rates from a range of different lenders, so they can help you compare and find the best deal.

How To Choose The Right Mortgage Term

The mortgage term is the length of time you'll be making repayments on your loan. In Sweden, mortgage terms usually range from 5 to 30 years.

The longer the mortgage term, the lower your monthly repayments will be. However, you'll end up paying more interest over the lifespan of the loan.

On the other hand, if you choose a shorter mortgage term, you'll have higher monthly repayments but you'll pay less interest overall.

It's important to remember that you can usually make overpayments on your mortgage without being penalised. This can help you pay off your mortgage sooner.

Tips For Applying For A Mortgage

Here are a few tips and things to consider before applying for a mortgage in Sweden:

  • Do your research: make sure you compare different mortgage providers to find the best deal for you.
  • Check your credit history: mortgage lenders will usually check your credit history when assessing your application.
  • Get pre-approved: if you're looking to buy a property, it's a good idea to get pre-approval for a mortgage. This will give you an idea of how much you can borrow and also show sellers that you're serious about buying.
  • Be prepared to make a down payment: as we mentioned before, most mortgage lenders in Sweden require a down payment of at least 15% of the property value.
  • Consider getting mortgage insurance: if you're worried about losing your job or being unable to make repayments, you may want to consider getting mortgage insurance. This will cover your mortgage payments if you're unable to make them.

What To Do If Your Application Is Rejected

If your mortgage application is rejected, don't panic. There are a few things you can do to try and improve your chances of getting approved:

  • Get help from a mortgage broker: if you're not sure where to start or you're having trouble getting approved, a mortgage broker can help. They'll be able to advise you on which mortgage providers are more likely to approve your application and they may even be able to negotiate a better interest rate on your behalf.
  • Save up for a larger down payment: if you're able to, try and save up for a larger down payment. This will show mortgage lenders that you're serious about buying a property and it may improve your chances of getting approved.
  • Wait a while and reapply: if you're not in any hurry to buy a property, you may want to wait a while and reapply for a mortgage later. Mortgage lenders' requirements can change over time, so it's possible that you may be approved if you apply again in the future.

In Conclusion

A mortgage is a big commitment, so it's important that you do your research and make sure you're getting the best deal for you. We hope this guide has been helpful and that you're now feeling more confident about applying for a mortgage in Sweden.

Good luck!

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