Easing Mortgage Rules: A Swedish Proposal

A Swedish commission suggests loosening mortgage rules to ease home buying. They propose raising borrowing ceilings and relaxing repayment requirements while introducing limits based on annual income. These changes aim to facilitate market entry for buyers without compromising financial stability.

In a bid to make home buying more accessible, a government-appointed commission in Sweden has recommended loosening the stringent mortgage borrowing and repayment rules currently in place. The commission announced its suggestions on Monday, emphasizing that adjustments could be made without jeopardizing financial stability.

These rules, established in response to the financial crisis of 2008-2009, currently impose a ceiling on borrowing and stringent repayment guidelines for high borrowers. The commission's proposal includes raising this ceiling and easing the repayment conditions.

Despite these recommendations, the commission also advised the implementation of a new borrowing limit corresponding to households' annual income, ensuring a balanced approach to mortgage regulation.

(With inputs from agencies.)