The 18 year old man came out of the flat and pointed a handgun at police, who shot him. The injured man went back into the apartment with a wound in his lower left leg, said police.
Before the shooting, which occurred at about 3am, he had released his mother from their home.
A special police unit from Stockholm arrived in Borlänge at 8am and began negotiations with the man an hour later.
After 45 minutes of negotiations the special unit broke into the apartment and arrested the man.
According to police spokesman Sven-Åke Petters the man handed himself over to police calmly and was then taken to hospital for treatment of the gunshot wound.
He is now suspected of making illegal threats, serious weapons offences and threatening a police officer.
The man himself rang the police during the night and made the threats against his mother. She said that he had drunk a large quantity of homemade spirits.
The 18 year old is said to be known by police.