Requirements for the amortization of the mortgage – Byggvärlden

Requirements for the amortization of the mortgage – Byggvärlden

  FSA, FI, wants a statutory amortization requirements and the new rules, new mortgage borrowers will repay the principal on mortgages to 50 per cent LTV.
 

 First, the loans repaid by at least 2 percent annually to an LTV of 70 percent. After at least 1 percent annually amortized down to 50 per cent LTV.

 New borrowers with lower LTVs often choose to wait to amortize. It is worrisome mean FSA as international experience suggests that households with LTVs over 40-50 percent are inclined to cut back on other consumption when economic conditions change.
 

 What worries FI is therefore the negative effects on the Swedish economy, the so-called macroeconomic risks, which could occur if something unexpected happens households or abroad. Then recessions deepens and growth in the economy lowered.

 FI wants because new mortgage borrowers will repay more than today. It increases their resilience to shocks and reduces the risk that Sweden’s economy is negatively affected if something unexpected happens in Sweden or abroad.
 

 FI is now working to develop the new rules in detail, which will take a few months. Two important issues to be resolved are the definitions of new loans and temporary exceptions.

 The rules will include space for households with temporarily strained economy to pause with repayments.
 

  Swedish construction industries are critical to the proposal. Amortization Requirements and previously introduced mortgage cap makes it difficult for those outside the housing market today, especially young people, to demand new housing, they say. The basic problem, however, is one of the low supply in the housing market. There have been few homes over the last twenty years. Moreover, the mobility of the population poor. Capital gains tax and the tax deferral allows lock-in effects and little incentive to seek new homes. On the rented market rent setting system that blocks the migratory chains are created.
 

  – The growth in the Swedish economy is likely to decrease if the amortization requirements are imposed because households’ scope for consumption then becomes lower. Household demand in recent years has contributed to the relatively good economic situation in Sweden compared to most countries in the world around us, says Björn Wellhagen, nutrition policy director at the Swedish Construction Federation, in a statement.