Plan ahead
The work to find the best interest rate should start before you've even bought a property. Prior to buying a property in Sweden, you need a lånelöfte or lender's note, a provisional agreement from a bank that you can buy a property up to a set value, with a maximum monthly running cost or fee.
Although you can buy a property with just one lender's note, try to get a couple from different banks, as this will make the process of actually applying for a mortgage quicker and easier when you've successfully bid on your dream home.
This will also provide you with peace of mind, as you will have an alternative to fall back on if one of the banks rejects your mortgage application despite previously giving you a lender's note (which is entirely legal).
Having said that, it's best to only get a maximum of two or three lender's notes – each lender's note requires a separate credit check, and it can affect your credit score if you have too many checks within a short period of time.
You can also get around this by using a service such as Ordna Bolån or Lånekollen, who contact multiple banks on your behalf but only check your credit once.
If you already own a property, make sure you know when your interest rate is up for renewal, and try and renegotiate a lower rate rather than letting it automatically renew.
Do your research
This includes using price comparison tools such as Compricer or Konsumenternas, but also looking at individual websites of mortgage providers and comparing interest rates there.
If you're a member of a trade union, check if you're offered a discount at a particular bank, as well as if your property qualifies for any other discounts, such as rewards for energy-efficient properties.
Many banks have a calculator on their website allowing you to use a sliding scale to alter the size of your deposit and see how that affects your interest rate, so make sure to have a look to see if you can get any discounts there, too. Some banks will offer you a discount if your belåningsgrad (the size of your loan compared to your deposit) is lower, so consider buying a slightly cheaper property or putting in more cash, if you can.
Make sure you know exactly how long any discount or reduced rate will apply for. Why not set a calendar reminder for this date, so you’ll be ready to renegotiate once the original offer expires? Either way, make sure you renegotiate your terms regularly so you’re confident you’re still getting the best deal.
Be prepared to negotiate
You may be able to negotiate a better offer than what is offered online, especially if you set up a meeting with a mortgage advisor directly. Don't be afraid to say that a competitor is offering you a better rate, if that's the case, and ask how they can match it.
It's also important to find out what requirements your bank has for offering you a lower rate. Would you have to take out expensive insurance, open an account with an expensive card or move your pension to their bank? Check in advance how this compares to what you currently pay for these services, so you know whether they're offering a better deal.
Don't be afraid to take any information (either digital or printed) with you to your meeting so you can easily compare different offers.
Finally, keep in mind that a mortgage advisor is ultimately a salesperson, trying to sell you a product. Remember that they have a vested interest in getting you to sign up to expensive add-ons or take out a fixed-rate mortgage at a higher rate, so ask for time to mull over their offer and look through any agreements in your own time at home.
By Catherine Edwards and Becky Waterton
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