Since 2001, Swedes have increased their mortgages by over ten percent annually, except during the financial crisis in 2008. In average, a Swedish household has a loan of over one and a have times the annual salary.
Warning cries are now being raised, concerned that the rapid increase of Swedes’ debts will lead to a situation similar to other European countries.
“Before crises break out we often see a rapid mortgage growth,” said Bengt Hansson, of the National Housing Credit Guarantee Board (Statens Bostadskreditnämnd), to SVT.
Over the past five years, Swedes have had Europe’s highest growth rates on mortgages. Even compared to 16 other OECD countries, Sweden is top of the charts, joint with Australia.
Despite the alarming reports of the debt crisis in Europe, Swedes are continuing to increase their debts, although the high growth rate was lessened somewhat this year. The average remains a seven percent increase on last year.
The mortgage comparison was made by SVT, the National Housing Credit Guarantee Board, and the European Central Bank.