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> and start paying a mortgage instead of debt. But a mortgage is debt … ? I’m not sure this accounts for it. Paying a mortgage “instead” implies it’s merely a
by nonethewiser 4y ago
> and start paying a mortgage instead of debt.
But a mortgage is debt … ?
I’m not sure this accounts for it. Paying a mortgage “instead” implies it’s merely a replacement. But in reality the debt is 2-4x higher than other OECD countries.
This stat makes it sound rather unsustainable:
>Four in 10 mortgage borrowers in Sweden are not paying off their debt, and those that are repaying the principal do so at a rate that would on average take nearly a century.
https://www.cnbc.com/amp/2014/08/24/swedish-household-debt-soars-as-poll-nears.html https://www.cnbc.com/amp/2014/08/24/swedish-household-debt-s...
- DavidVoid 4y ago> Four in 10 mortgage borrowers in Sweden are not paying off their debt, I believe this is no longer true. Since 2016 there is an amorteringskrav (amortization requirement) on housing loans. All new housing loans with a loan-to-value ratio of 70% or higher must pay off at least 2% of the loan per year, and if you're below 70% then you must pay off at least 1% per year until you're below 50%. You must also pay an additional 1% per year if you've borrowed more than 4.5 times your yearly salary (excluding taxes). When you buy a house/apartment it's most common to have an initial loan-to-value ratio of 85% (since you're only allowed to get a housing loan for up to 85% of the property's value).
- matsemann 4y agoOps, I meant rent, not debt. Too late to edit now.