Sweden's finance watchdog urges homeowners to renegotiate their mortgages
'The bank's margins are increasing and there's room for negotiation,' FI consumer protection economist Moa Langemark said in a statement.
In the last quarter of 2024, the Riksbank, Sweden's central bank, lowered the key interest rate by 0.75 percentage points to 2.5 percent, lowering mortgage financing costs for Swedish banks and, to a lesser extent, variable rates for mortgages. All this means that banks made more money on mortgages.
'Call your bank and renegotiate your interest rate if you're not happy with it,' Langemark said. 'Sometimes asking for an amorteringsunderlag [foundation of amortisation] is enough for your bank to offer you a better deal.'
An amorteringsunderlag is necessary if you want to move your mortgage to another bank, so ordering one can send a message to your current bank that you're thinking of switching.
The document details the amortisation requirements of the mortgage you want to move. This includes information on how much you already amortise, the estimated value of your property and the date when that value was set, and the size of your loan.
The best way to compare different offers, FI says, is to compare your interest rate with the average rate or genomsnittsräntan, rather than the list rate – the listränta – which is usually higher. Banks legally have to provide the average interest rate on their websites, but they may not be as prominent as the listed rate.
According to financial market statistics from Statistics Sweden, the average variable rate for new mortgages was 3.45 percent at the end of the fourth quarter of 2024, compared to 4.21 percent at the end of the previous quarter.
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