Mortgage Calculator Sweden: Free Home Loan Calculator (2024)


Tobias Sjöström

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The Swedish mortgage system, while efficient and well-structured, can seem complex if you’re new to the country or unfamiliar with its financial landscape. But don’t worry, we’re here to help you navigate this terrain. One of the most powerful tools at your disposal is a mortgage calculator, specifically tailored for the Swedish market. 

Whether you’re considering buying a home or just curious about the process, a mortgage calculator can provide you with a wealth of information. It can help you understand how much you can afford, what your monthly payments might look like, and how different factors can impact your mortgage. 

Get Multiple House Loan Offers in Sweden

  1. Apply here
  2. Select the amount you need
  3. Pick yout term length
  4. Answer the required questions
  5. Fill out your personal information
  6. Request loan offers

💡 Tip: Using Google Chrome, you can easily translate the website to English. Just right-click anywhere on the page and select ‘Translate to English.’

Loan example: Annuity loan SEK 5,000 in 1 year (12 installments). Nominal interest rate: 5.91%. Eff. interest: 29.12% per 2021-01-29. A total of SEK 5,655 to pay. Monthly cost: SEK 430.

Why Do You Need a Mortgage Calculator in Sweden?

A home loan calculator is essentially your financial compass. It allows you to calculate your potential monthly installments, giving you a clear picture of whether a particular property fits into your budget. This is crucial because it helps you avoid the common pitfall of falling in love with a house only to realize later that it’s beyond your financial reach.

The calculator works by taking into account several key factors. These include the total cost of the house, the down payment amount, the interest rate, the amortization period, and the payment period. By inputting these details, the calculator can provide an estimate of your monthly payments. This way, you can adjust your expectations and plans according to your financial capabilities.

But that’s not all. The calculator also allows you to experiment with different scenarios. Want to know how making a larger down payment would affect your monthly installments? Or how choosing a longer payment period could make your payments more manageable? The home loan calculator can show you all this and more.

The more you understand about your potential mortgage, the better equipped you’ll be to make decisions that are right for you. So, as you step into the Swedish property market, make sure to take advantage of our home loan calculator. It’s a simple yet powerful tool that can make your journey to homeownership in Sweden smoother and more enjoyable.

Related: Learn more about loans in Sweden

Understanding the Mortgage System in Sweden

Sweden’s mortgage system, like its beautiful archipelagos and midsummer celebrations, is unique. It’s a system that’s been carefully designed over the years to ensure stability, fairness, and transparency. Let’s dive in and explore how it works.

In Sweden, mortgage loans are primarily provided by banks and credit institutions. These institutions follow a principle of prudent lending, ensuring that the mortgage loan you’re granted is within your means to repay. This is done by taking into account your income, expenses, and other financial commitments. 

One of the key features of the Swedish mortgage system is the loan-to-value (LTV) ratio. In most cases, you can borrow up to 85% of the property’s value, and the remaining 15% would need to be covered by your down payment. This means that if you’re eyeing a property worth 2 million SEK, you’d need to have at least 300,000 SEK for the down payment, and the rest could potentially be covered by a mortgage loan.

But it’s not just about how much you can borrow. The lending institution will also assess your creditworthiness. This involves looking at your credit history, current income, and overall financial stability. In some cases, the bank may also require additional security, such as a co-signer.

The Swedish mortgage system offers several benefits to homebuyers. These include:

  • Competitive interest rates: Swedish banks offer competitive interest rates, making it more affordable for you to borrow.
  • Flexible repayment options: You can choose between fixed and variable interest rates, and you have the option to repay your mortgage over a period of up to 50 years.
  • No prepayment penalties: If your financial situation improves and you want to pay off your mortgage early, you can do so without any penalties.

The Swedish mortgage system is designed to support you in your journey to homeownership. It’s a system that values transparency, fairness, and financial stability.

Interest Rates and Mortgage Types in Sweden

Interest rates play a pivotal role in your mortgage journey. They can significantly impact your monthly payments and the total amount you’ll end up paying for your home. In Sweden, you’ll find that the interest rates are competitive, making homeownership a feasible dream for many.

The interest rate you’re offered will depend on several factors, including the type of mortgage you choose, your financial situation, and the current market conditions. While it might seem like a complex puzzle, don’t worry. We’re here to help you piece it together.

In Sweden, you can choose between two main types of mortgages: fixed-rate and variable-rate

Fixed-rate mortgages offer stability. The interest rate remains the same throughout the loan term, so your monthly payments will also stay the same. This can be a great option if you prefer predictability and want to know exactly what your monthly payments will be.

Variable-rate mortgages, on the other hand, offer potential savings. The interest rate can fluctuate based on market conditions, meaning your monthly payments can change over time. While this type of mortgage comes with uncertainty, it can offer lower interest rates compared to fixed-rate mortgages.

Remember, there’s no one-size-fits-all answer when it comes to choosing a mortgage type. It depends on your preferences, financial situation, and risk tolerance. 

? Pro tip: don’t hesitate to negotiate the interest rate with your bank. While the base rate is determined by market conditions, there’s often room for negotiation based on your relationship with the bank and your financial profile.

Additional Costs and Early Repayment

While the excitement of buying a home in Sweden can be quite exhilarating, it’s essential to keep in mind that the mortgage isn’t the only cost you’ll encounter in your journey. There are additional costs that come with taking out a mortgage, and being aware of them upfront can help you plan your finances better.

One such cost is the ‘stamp duty’ or the property transfer tax. In Sweden, when you buy a property, you’re required to pay a stamp duty, which is 1.5% of the purchase price. This is a one-time cost that you’ll need to pay within three months of the property transfer.

You’ll also need to pay a small fixed fee for registering the mortgage deed with the Swedish Land Registration Authority (Lantmäteriet). This is a crucial step in the home buying process as it legally secures the bank’s claim on the property.

Additionally, there might be other costs such as bank fees, valuation fees, and potentially broker fees if you choose to use a broker to find a property or a mortgage.

Early Repayment

Now, let’s talk about early repayment. One of the great aspects of the Swedish mortgage system is that it allows for early repayment without any penalties. This means that if you come into some extra money – perhaps through inheritance, a bonus, or savings – you can choose to pay off part or all of your mortgage early. This can significantly reduce your interest costs over the life of the loan.

However, it’s important to note that if you have a fixed-rate mortgage, the bank might charge a fee if you repay your loan early. This is because the bank has borrowed money on the market based on the fixed term of your loan, and if you repay early, they might make a loss. The exact rules can vary between banks, so it’s always a good idea to check with your bank first.

Adjustable-Rate Mortgage in Sweden

An adjustable-rate mortgage, also known as a variable-rate mortgage, is a type of mortgage where the interest rate can change over the term of the loan. This type of mortgage can be a bit of a wild card, offering potential savings but also coming with a degree of uncertainty. Let’s delve into the specifics of adjustable-rate mortgages in Sweden.

In an adjustable-rate mortgage, the interest rate is typically tied to a benchmark and will vary as that benchmark goes up or down. This means that your monthly payments can also fluctuate over time. While this might sound a bit risky, it’s important to remember that it can also work to your advantage. If interest rates decrease, your monthly payments will go down too, potentially saving you a significant amount of money over the life of the loan.

However, it’s also possible for interest rates to increase, which would result in higher monthly payments. That’s why it’s crucial to ensure that you have some flexibility in your budget to accommodate potential increases in your mortgage payments.

One of the unique features of adjustable-rate mortgages in Sweden is the ability to repay the loan amount two months before the interest rate is adjusted, at par value. This means that if you foresee a significant increase in interest rates, you have the option to repay your loan early to avoid higher payments.

If you choose not to repay at par value, you can repay it any time with the help of similar bonds used to fund the mortgage loan. This flexibility provides you with more control over your mortgage and allows you to make decisions that best suit your financial situation.

Related: What you need to know about car loans in Sweden

Additional Resources

To make your journey smoother, we’ve compiled a list of additional resources that can provide you with valuable insights and tools. From mortgage calculators to cultural guides, these resources are designed to help you make informed decisions as you pursue your dream of homeownership in Sweden.

Swedish Financial Institutions

  • Swedbank: One of Sweden’s largest banks, offering a range of mortgage options and financial services tailored to both locals and foreigners.
  • Handelsbanken: Known for its personalized customer service, Handelsbanken provides various mortgage solutions and financial products.
  • SEB: Specializing in corporate and investment banking, SEB also offers competitive mortgage rates and comprehensive financial services for individuals.

Swedish Property Websites

  • Hemnet: Sweden’s most popular property listing website, featuring a wide range of homes and real estate options across the country.
  • Booli: A user-friendly property search platform that also provides valuable insights into property prices and market trends in Sweden.

ABOUT Tobias Sjöström

Tobias brings much experience from his time at one of Sweden’s largest banking institutions. He’s not just our lead financial guide; he’s also an avid traveler who understands the challenges expats face.

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