FFFS 2016:16

Finansinspektionen’s regulations regarding amortisation of loans collateralised by residential property

In force from 2016-06-01


The regulations specify that new mortgages shall be amortised if the loan-to-value ratio exceeds 50 per cent. The amortisation requirement applies to all new loans that are collateralised by a residential property. The property may be revalued every fifth year. Borrowers who increase existing mortgages after 1 June to a loan-to-value ratio that exceeds 50 per cent may be offered the option of instead amortising the additional loan over a period of ten years. The rules apply to all banks and credit market companies.

The regulations are decided pursuant to new legislation and a new authorisation for Finansinspektionen. The regulations were approved by the Government through powers granted on 12 May 2016.

The new regulations enter into force on 1 June 2016.


The scope of the regulation is expanded to also include firms with authorisation to issue mortgages in accordance with the Mortgage Business Act (2016:1024). The possibility has also been introduced for a firm to allow a borrower not to amortise in accordance with the regulations when the firm issues the loans referred to in section 4, fourth paragraph, second sentence of the Consumer Credit Act (2010:1846).

The Government granted FI permission on 15 November 2018 to decide on the regulations. The amendments go into effect on 1 January 2019. amendment 2018:24

Under the amendment, new borrowers with a mortgage in excess of 4.5 times their gross income shall amortise at least 1 per cent of the debt in addition to the amortisation already in effect.

The Government granted its consent on 30 November 2017 for Finansinspektionen to decide on the regulations. The amendments go into effect on 1 March 2018. Amendment 2017:23



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