At a viewing on Kungsholmen in Stockholm, prospective buyers express doubts about the new mortgage rules taking effect on April 1. Many believe the relaxations will benefit banks more than buyers and push up prices. It is the last viewing Sunday before the changes.
Sunday, March 29, the last viewing Sunday before the new mortgage rules take effect. On Kungsholmen in Stockholm, couples gather to view an apartment on the fourth floor. Prospective buyers question agent Tolgay Erdinc from Länsförsäkringar about renovations, possession dates, and bids.
Simon Karlsson, visiting with his partner, sees no benefits in the rules. "Sure, you can put down a lower deposit but I don't think it will be positive for anyone," he says. "I think you put yourself in the shit."
Sara Tegström and Calle Göransson are hunting for their first shared home but do not plan to borrow up to 90 percent. "I don't think the rules will benefit buyers much, because I think the market will go up accordingly. So I mainly think it will benefit the banks that can lend more money," says Calle Göransson. He appreciates amortization: "It's fun to amortize."
Tolgay Erdinc notes increased demand for smaller apartments like one-bedrooms. "First-time buyers... have calculated really carefully," he says. Established buyers are less affected due to larger deposits.
The new rules raise the mortgage cap from 85 to 90 percent of the property value, reducing the down payment to 10 percent. The tightened amortization requirement is removed for loans over 4.5 times annual income. The initiative comes from the government to bring more people into the housing market.