Cash Down Payment (15%)
Financial Supervisory Authority general guidelines FFFS 2010:2 (mortgage cap)
What does it mean?
The cash down payment (kontantinsats) is the portion of a home purchase that must be financed with your own funds — at least 15% of the purchase price according to the Swedish Financial Supervisory Authority's mortgage cap. This portion cannot be financed through a mortgage. If you buy a home for SEK 2 million, you need at least SEK 300,000 in own capital.
The down payment can come from savings, gifts, sale of a previous home, or other assets. Some banks offer so-called top-up loans or unsecured loans for parts of the down payment, but these carry significantly higher interest rates and are not recommended. The 15% requirement was introduced in 2010 to curb household debt and protect home buyers from price drops.
Key Points
- At least 15% of purchase price must be own funds
- Cannot be financed with a mortgage — requires savings or other assets
- Top-up loans and unsecured loans carry significantly higher interest
- The requirement was introduced in 2010 by the Financial Supervisory Authority
- Gifts from parents count as down payment
Practical Tip
Start saving for a down payment early — even small monthly amounts make a big difference over time. If you receive help from parents, document it as a gift to avoid issues with the credit assessment.
Legal Basis: Financial Supervisory Authority general guidelines FFFS 2010:2 (mortgage cap)
Based on content from Bofrid's Knowledge Bank