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Mortgage loan deposit

Borrowing deposit for the apartment

chewie
post 5.Mar.2019, 09:34 PM
Post #1
Joined: 5.Mar.2019

Hey everyone!

I moved with my girlfriend to Sweden 3 years ago. It was quite a turbulent time during which my girlfriend and I first moved to Malmo and then to Stockholm, changing several jobs and apartments.
Our current apartment is being sold and we need to move out soon. We are sick of moving around and thought about buying an apartment.

The problem we have is the fact that we did not manage to save enough for the deposit - we have around 300k SEK saved, and we both earn decently - in total around 100k SEK a month.
Does anyone know if it's possible for us to borrow the deposit part as well as getting the mortgage? We tried contacting several banks, but they are abnormally slow so have been trying to get info from them during the last month. We aim for 800-900k deposit.

We could find another rental apartment, risking another moving probably quite soon according to our experience so far - we really want to avoid this kind of stress.

If anyone has any experience worth sharing, please do, I will be thankful.

Cheers!


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skogsbo
post 5.Mar.2019, 09:55 PM
Post #2
Joined: 20.Sep.2011

Yeah. It is possible to borrow part of the deposit. You might have already heard about top and bottom loans. However it will be at a higher rate and the bank will expect your jobs to be 100% secure and a good credit history. Small branches where you are speaking to the manager will work more in your favour.
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Svedallas
post 5.Mar.2019, 11:30 PM
Post #3
Joined: 21.Apr.2016

QUOTE (chewie @ 5.Mar.2019, 09:34 PM) *
Hey everyone! I moved with my girlfriend to Sweden 3 years ago. It was quite a turbulent time during which my girlfriend and I first moved to Malmo and then to Stockholm, ... (show full quote)


No. You cannot.
It is not legal.

The law requires that you put down a cash payment - usually 30% of the price.

If it was that easy dont you think everyone would be able to that?
Common sense.
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skogsbo
post 6.Mar.2019, 07:19 AM
Post #4
Joined: 20.Sep.2011

QUOTE (Svedallas @ 5.Mar.2019, 10:30 PM) *
No. You cannot.. It is not legal.. The law requires that you put down a cash payment - usually 30% of the price.. If it was that easy dont you think everyone would be able to that?. Common sense.

Banks get around by making the loan unsecured and charged at a higher rate to cover their risk. Quote the law that says you have to pay a 30% cash deposit.

The newer amortization requirement states that new mortgage takers should amortize two percent of the entire mortgage until the LTV ratio is reduced to .70 of the home's value. Thereafter, they must amortize at one percent until the LTV ratio is lowered to .50

This isn't the same as only borrowing 70% in the first place.

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chewie
post 6.Mar.2019, 03:39 PM
Post #5
Joined: 5.Mar.2019

QUOTE (skogsbo @ 5.Mar.2019, 09:55 PM) *
Yeah. It is possible to borrow part of the deposit. You might have already heard about top and bottom loans. However it will be at a higher rate and the bank will expect your ... (show full quote)


Yeah, I've heard. I am discussing with my bank at the moment. Unfortunately, this brings my max mortgage amount down significantly. Damn smile.gif
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