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Catch 22 of buying an apartment from abroad

Need help with a few questions as I'm totally lost

Shasla
post Yesterday, 17:22
Post #1
Joined: Yesterday, 14:03

Hej!

Before I go to the questions here is the situation:
I'm living in Hungary (so EU citizen), and I'd like to move to Malmö, Sweden. Instead of going through the hell of renting, I'd rather buy. Even though the prices in Malmö are good, I'd still need a mortgage. I can comfortably afford around 30-40% down-payment for a Bostadsrätt. I'm looking at Lagenheter or Radhus around 800-900K SEK in Malmö btw. I can probably go a bit higher if the apartment is worth it.

I wouldn't even have to switch jobs, because I would be able to continue working for the company I am employed at currently (although my salary would be painfully average in Sweden). They could even move my payroll to Sweden as the company has a small office in Stockholm.

So to summarize: EU citizen, with a stable job, perfect credit history with double or even
triple the down-payment needed for a mortgage. I speak English, a little German, and even started learning Swedish (+ I speak Hungarian obviously). Sounds ok right?

Well here comes the part where I'm stuck:
After 2 weeks of digging around on this topic I feel I've hit a roadblock. It seems that in order to get a mortgage, I need to have a Personnummer and an ID from the Skatteverket. In order to have that you need an address. But to buy an apartment to get said address I need a mortgage, but for that you'll need that Personnummer and ID and so on. And that makes it pretty much impossible. At least that's what I gathered.
If I understand correctly I also need to rack up a credit history, but most banks won't even allow you to open an account without an ID and they don't seem to be willing to run the credit check in your origin country.

So my questions:
  • Is it possible to get a mortgage for an apartment in Sweden without being a citizen? (But being an EU citizen and having the down-payment and credit history in another EU country)
  • Is it possible to get a Swedish ID without having an address in Sweden. (This seems the less likely option, but wanted to ask anyway. Maybe a temporary one?)
  • Why can't the banks in Sweden run credit checks for EU citizens? (I get that money laundering is an issue, but it's not like every bank outside of Sweden is a money laundering operation.)
  • Are there any banks in Sweden that are more foreigner friendly? (But still not sketchy with exorbitant fees)
  • Did anybody got through this hurdle and can share his/her story or just provide insight?


Any help on the topic would be highly appreciated.

Tack så mycket!
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TheExpatEagle
post Yesterday, 19:02
Post #2
Location: Skåne
Joined: 23.Aug.2016

QUOTE (Shasla @ 11.Nov.2019, 06:22 PM) *
So my questions:[1]Is it possible to get a mortgage for an apartment in Sweden without being a citizen? (But being an EU citizen and having the down-payment and credit history ... (show full quote)


1. Not from a bank in Sweden. Maybe a bank in your home country would loan you money but you'll need a credit history and a personal number.

2. No.

3. Because we use a personal number system. Countries like, for example, the UK where I am from has a system where you need 12 months credit history because we don't have an easy way to run checks. So in that situation how would a Swedish bank be able to check a UK citizen when even the UK banks can't?

4. No.

5. I'd say nobody has. I applied for a mortgage after living here for 3 years. I'd started working 3 months earlier and I had 500.000kr for a deposit.

The mortgage was for 300.000kr so the apartment was 800.000kr but the bank still said no.

You have to remember that the bostadsrättsförening have to approve you too because you'll be paying between 4.000kr-9.000kr a month avgift on top of any mortgage. So even if you turned up and was able to pay for an apartment in cash you still have to be approved.
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Shasla
post Yesterday, 21:57
Post #3
Joined: Yesterday, 14:03

QUOTE (TheExpatEagle @ 11.Nov.2019, 07:02 PM) *
I'd say nobody has. I applied for a mortgage after living here for 3 years. I'd started working 3 months earlier and I had 500.000kr for a deposit.The mortgage was for ... (show full quote)


What the hell? Did they ever provide a reason? Is it because your probation period was 6 months (I think I read somewhere that it is 6 months on Sweden) or maybe your salary was low for them? It seems like a perfectly reasonable setup for a bank otherwise.

Anyway, based on your answers it is pretty much impossible then. I know I could try and rent but what I've read on it so far, I'm pretty sure it's just a very unpleasant experience. At least not what I would willingly put myself through.

QUOTE (TheExpatEagle @ 11.Nov.2019, 07:02 PM) *
You have to remember that the bostadsrättsförening have to approve you too


I understand that, but why would they not approve you. Unless I'm an obnoxious, loud and untidy neighbor, which may or may not be apparent right from the get go, what do they actually do to verify that you're ok to purchase?
From what I experienced so far, the bank always takes the Avgift and the Driftkostnad into account. After that why would they not approve you?
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bonviveur
post Today, 7:41
Post #4
Location: Värmland
Joined: 12.Oct.2015

best bet would be to by house outside Malmo in a countryside, cash you have should be enough to avoid mortgage all together
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gsurya
post Today, 10:25
Post #5
Location: Malmö
Joined: 8.Jan.2010

I guess a lot has to do with the kind of job you have, monthly income, debt, bank balance, assets etc.

I had zero debt or liabilities, good level of income and assets, "permanent" contract with a good employer.

So I was able to get a bank loan from SEB to buy an apartment in Malmo, after living here for just over an year on a work permit, in a rental apartment.
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