STOCKHOLM (Reuters) – Sweden's amortization requirements and mortgage caps have kept households resilient and served the economy well, Riksbank Governor Erik Thedén said in a statement on Tuesday.
“The high level of debt, combined with short periods for setting interest rates, has made the Swedish economy more vulnerable,” he said before a Financial Stability Board hearing in Parliament’s Finance Committee.
“However, the combination of consumption requirements, mortgage limits, and banks’ credit ratings meant that Swedish households and the economy were better equipped to deal with the rapid rise in inflation and interest rates.”
A government-appointed committee recommended in November that Sweden relax rules on mortgage borrowing and repayment, making it harder for new buyers to enter the housing market.
Financial Markets Minister Niklas Wickmann said at the time that the government would decide in the first half of 2025 how to amend mortgage rules.
