“There is room to ease these measures without undermining financial stability,” the head of the commission Peter England told reporters.
The government will decide on how to adjust mortgage rules in the spring, Financial Markets Minister Niklas Wykman said.
Swedish households are among the most highly indebted in Europe – at around 190% of disposable income – and the current mortgage repayment rules, introduced after the financial crisis of 2008-2009, were aimed at reducing the related risks to the banking system.
They include a borrowing ceiling and rules over mortgage repayment for heavy borrowers, but they have been criticised for making it hard for first time buyers and for those without capital.
Heavily indebted households were also badly hit during the recent period of high inflation and high rates, amplifying a fall in consumption and the effect on the economy.
The commission recommended raising the borrowing ceiling to 90% of the value of a property from 85% and easing repayment requirements for higher borrowers.
However, the commission recommended that the government introduce an income component to borrowing rules, limiting mortgage loans to around 5.5 times households’ annual gross income.
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