Households borrow more in relation to their income

Swedish households are borrowing more in relation to their income. Despite this, they have in general sufficient margins to make their payments. FI presents these and other conclusions in this year's Mortgage Survey, which is being published today.

Household indebtedness is a very relevant topic that FI monitors closely. FI's Mortgage Survey, which is being presented today for the sixth time, is an important part of this work.

This year's Mortgage Survey shows that the average debt-to-income ratio for households with new mortgages increased from 387 per cent to 406 per cent between 2014 and 2015. Households are borrowing more in relation to their income, which is largely due to house prices rising faster than household income.

"Even though the households on average are borrowing more in relation to their income, few households with new mortgages would experience problems repaying their loans if interest rates were to rise or if their income were to decrease. This is evident from our stress tests and confirms that the risks associated with household indebtedness are primarily macroeconomic. The share of households with small margins has also decreased in the past few years," says FI's Chief Economist, Henrik Braconier.

The survey also shows that the share of new mortgage lenders that amortise has increased from 44 per cent in 2011 to 67 per cent in 2015. Under FI's proposed amortisation requirement, even more households will amortise.

At 10:00 a.m. today, FI will hold a press conference at its offices at which Chief Economist Henrik Braconier and Analyst Johan Berg will present their conclusions from the report. The press conference will be webcast at fi.se.

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