Temporary dispensation from amortisation of mortgage loans expires

In April 2020, the Swedish Financial Supervisory Authority decided to temporarily suspend the amortisation requirement. The forbearance was made as the coronavirus was expected to have a major negative impact on the Swedish economy, and this was a way of making things easier for households in a turbulent environment. 

The Financial Supervisory Authority has seen an increase in indebtedness as a result of rising house prices, and has therefore made a decision to reintroduce the amortisation requirement.

Read more on the Swedish Financial Supervisory Authority’s website Opens in a new window

If there are special reasons, you can be granted dispensation from amortisation for a limited period. These are occasions where your financial situation has deteriorated significantly, for example in the event of unemployment, illness, divorce, parental leave or studies for a shorter period of time. The exceptions are not general but are tested on a case-by-case basis. Contact your local branch and they will help you.

Amortisation means that you make repayments on your loan. When you amortise your mortgage loan every month, the loan decreases by the same amount. Your interest expenses also decrease, since they are partly based on the size of your mortgage loan. By amortising and reducing your mortgage loan, you will be less affected if interest rates were to rise.

Amortisation