Swedish MPs have limited the maximum period of the mortgage for 105 years. Until recently, the Swedes took out loans almost without restrictions, so the average term of the mortgage amounted to 140 years.
As a result, not only borrowers had to pay to, but also their descendants. However, most of them do not want to have affairs with additional expenditure and, therefore, quickly put the objects on sale.
The purpose of this legislation is to reduce debt levels as well as reduce the growth in property prices in the country. Over the past 2 years, the average level of household debt in Sweden increased from 170% to 366% of annual family income. Thus, Sweden is included in the list of the "overfinancing" European countries.
Another new rule arising from the new law - in 5 years after the registration of mortgage, borrowers in Sweden are now required to pay banks not only interest, but also at least part of its debt. This measure, according to representatives of the Finance Committee of Parliament should extend the "loan repayment culture." Recall, in 2014 a third of all borrowers payed to the credit institutions only the interests.
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