Published by Global Banking and Finance Review
Posted on January 21, 2025
1 min readLast updated: January 27, 2026
Swedish mortgage caps and amortisation rules have bolstered economic resilience, says Riksbank chief. Despite high debt levels, these measures helped manage inflation and interest rate hikes.
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.
(Reporting by Anna Ringstrom and Simon Johnson, editing by Terje Solsvik)
The article discusses how Swedish mortgage rules, including amortisation requirements and caps, have bolstered economic resilience.
How have Swedish mortgage rules impacted new buyers? They have made it harder for new buyers to enter the market, prompting calls for easing.
What is the Riksbank's stance on current mortgage rules? The Riksbank supports them for enhancing economic stability amid inflation.
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