Mortgages have been surprisingly easy to obtain in Sweden, especially if you approach a bank you already have a history with. It was not unusual to be allowed a 100% mortgage and even to be offered a mortgage while not working – although you must have realistic prospects.

Since the recent credit crisis however, that all seems to have change. Everytime you pick up the paper and read about the housing situation it is mentioned that the banks are now much more restrictive with their lending policies.

Approach several mortgage lenders to see what they are willing to lend you and what rates you are offered.

is a state-owned lending institution that was set up in 1985 to fund the state-owned property. SBAB has approximately a mere 8-9% of the market for home loans, despite the fact that they almost always have the lowest adverstised rates. You can apply for on the internet and receive a response directly, so it is wise to compare them with your local bank.

Once you have established who you will borrow from you will need to pay a fee for your mortgage deed (pantbrev). This is calculated as a percentage of the size of the mortgage you will be taking out plus a fixed handling fee.

Swedish loans tend to be calculated over a eternity (40-50 years) and many families never have any intention of paying off anything other than the interest. Tax deductions for loans have encouraged this attitude although the taxation advantage of having a loan is not what it was some years ago. Still, interest payments reduce your taxable income and you may find your bank manager is surprised if you want it spread over a shorter period of time.