STOCKHOLM (Reuters) – Amortisation requirements and mortgage caps in Sweden have safeguarded household resilience and served the economy well, Riksbank Governor Erik Thedeen said in a statement on Tuesday.
The high level of debt, together with short periods for fixing interest rates, has made the Swedish economy more vulnerable, he said ahead of a hearing of the Financial Stability Council in parliament’s finance committee. However, the combination of amortisation requirements, mortgage caps and banks’ credit assessments has meant that households and the Swedish economy were better equipped to handle the rapid rise in inflation and interest rates.
A government-appointed commission recommended in November that Sweden ease rules on mortgage borrowing and repayment which have made it harder for new buyers to get into the housing market. Financial Markets Minister Niklas Wykman said at the time that the government would decide in the first half of 2025 on how to adjust mortgage rules.
