Swedish Home Valuations Affect Mortgage Terms and Amortisation

Raising a property's market valuation in Sweden can improve a homeowner's loan‑to‑value ratio, allowing higher borrowing limits and potentially lower interest rates. Lenders typically permit borrowing up to 85 % of the assessed value, and a new valuation can lower the amortisation base.

However, a higher valuation may also trigger higher amortisation requirements under current rules: loans above 70 % of the amortisation‑grounded value require a minimum 2 % repayment, while those between 50‑70 % require 1 %. Additional costs include the valuation fee (about 1 000–2 500 kr) and possible higher debt‑to‑income ratios, which can increase monthly payments despite lower interest rates. Homeowners are advised to weigh the benefit of extra borrowing against the risk of higher repayments and greater sensitivity to interest‑rate changes.