New in Sweden and interested in getting a mortgage?

Getting started with any venture or buying property overseas can be challenging. At the core of everything is the money needed to make this happen.

If you are new in Sweden and are looking to acquire some property it would be important to identify a good source of funds for a successful process. You do not want to get stuck along the way to clear up the property costs and associated costs that come with their purchase. To avoid that, you can consider acquiring a mortgage in Sweden to finance the project. When not sure of how to go about this, consider getting the services of a loan broker.

Make use of loan brokers like Swedish startup Consector for help with the best mortgage options in Sweden. This agency has contacts with various credit institutions and major banks that can help you acquire your property by providing the requisite funding. The increasing property prices in the country have pushed many to take the buy option instead of renting. For that reason, borrowing from financial institutions becomes a great choice for many looking to buy a property. So, how do you go about getting the best loan rates in the market? You must take a well-calculated approach to make the most out of this investment.

Use loan brokers for mortgage

It all starts by identifying the type of property you want to acquire. After doing so, establish how much it will cost you and the options you got to pick the most appropriate solution for the property purchase. Remember that the loan you are getting should be enough to meet the expenses and not go overboard to avoid plunging yourself into a huge debt. So, it is important to calculate the amount of money you will need to cater for the property and any costs associated with it. Where possible, it is advisable to pick a single financing option instead of borrowing from different creditors.

A lot of money will be required to buy property in Swedish cities. If you are new, you will need professional help to navigate through this market. Get advice on property costs first and look at various options before settling on any. It will be very important to be well-informed before making your buy-decision. Prices for apartments and houses in Sweden are available from trusted sources online to help you figure out how much mortgage you will need. Different property locations also have different price quotations hence the need to consider where your property is situated as well.

Funding from Swedish financial institutions

Banks are arguably the biggest lenders in Sweden. Mortgage applications in banks are reviewed separately where the amount for the property purchase will be calculated by the bank itself. This process cannot go on unless you are registered in the country to gain eligibility for purchase. Just as is the case with banks around the world, your credit history will be of importance to them. Any assets and/or loans acquired abroad will also be useful information to help the lender decide on whether you qualify for the loan applied or not.

Lending in Sweden comes with strict regulations through law and the banks as well. After your income flow has been identified, the banks will also determine whether you can sustain your family with the remaining balance upon payment of the loan instalments. Again, it is important to note that funding available from banks cannot be more than 85% of the property value and/or purchase price. Amortizations requirements dictate that the repayment rate is at 2% per annum until the loan gets to 70% of the property value, after which 1% rate is applicable until the loan gets to 50%. The standard mortgage is issued up to a maximum of 5 times your annual tax before tax.

Final advice

Understanding the laws applicable in Sweden for the purchase of property is very important especially when seeking funding for it. These dynamics will help you come up with the best decision for your mortgage and get good returns from it. The help of loan brokers become inevitable if you are new in Sweden. Get the help of Swedish startup Consector to help you with information you need to decide on your mortgage!