Demand for amortisation

Everything you need to know about the demand for amortisation

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How the amortisation requirement works

If you borrow 50-70 per cent of your home’s value, the loan must be repaid by one per cent of the total loan amount per year. If you borrow above 70 per cent of the value, you must repay two per cent of the total loan amount per year. In addition to this, if you are borrowing more than 4.5 times your annual gross income, you must repay a further one per cent of the total loan amount. If the loan is under two people’s names, we count their combined salaries. Even if you are not subject to the amortisation requirement, it is always a good idea to amortise your loans.

Loan-to-value ratio

The loan-to-value ratio represents the size of the mortgage loan in relation to the property’s market value.

How much do you have to amortise?

Loan-to-value ratio	Loan less than 4.5 times the gross salary	Loan more than 4.5 times the gross salary
Below 50 %	-	1 %
50-70 %	1 %	2 %
More than 70 %	2 %	3 %

The debt ratio reflects how much you are borrowing in relation to your gross salary.

More about the demand for amortisation

If you borrow more money

If you have a mortgage loan that you took out before 1 March 2018 and wish to borrow more money, you can take advantage of the alternative rule. The alternative rule means that the new loan is amortised over ten years. The previous loan is not affected.

Moving your mortgage loan(s) to Handelsbanken

When you move your loan(s), the amortisation requirement is not affected. You retain the terms and conditions of the amortisation requirements that applied when the loan was taken out with the previous bank.