Exemption from loan payments

Mortgage borrowers no longer required to make minimum payments on the principal of their home loans. 

• As of April 14, banks in Sweden have the option of granting mortgage borrowers exemptions from the requirement to make minimum payments on the principal of their home loans. The exemption covers both new and existing mortgage borrowers and means they can be exempted from the requirement until August 31, 2021. The Financial Supervisory Authority in Sweden, Finansinspektionen, has restrictions on how much of a loan needs to be amortized every year. If the home loan amounts to 50 percent but less than 70 percent of the value of the home, you must repay at least 1 percent per year of the size of the home loan. If the home loan amounts to 70 percent or more of the value of the home, you must repay at least 2 percent per year of the size of the home loan. A lender can only grant home loans at 85 percent of the value of the home. If the home loan amounts to less than 50 percent of the value of the home, there is no mandatory requirement for repayment.