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The Local _ Stockholm _ Mortgage downpayment in Stockholm

Posted by: skallurr 21.Sep.2018, 12:54 PM

Hi,

I have been working in Stockholm from last 2 years. I have finished my education loan and started looking at apartment to buy. I do not have the downpayment i.e 15% of the value thatI need to cash in.

My target is apartment less than 1.5Million SEK which require 225K SEK. Is there a way to take 200K private loan and then the Mortgage loan?

I can pay back the private loan quickly. The reason to hurry is because the apartment prices are relatively low now. Please share your thoughts.

I checked with SEB and they said it is not possible to take private loan and pay for downpayment. It is against law.

Regards,
Sunil

Posted by: Svedallas 22.Sep.2018, 02:34 PM

QUOTE (skallurr @ 21.Sep.2018, 01:54 PM) *
Hi,

I have been working in Stockholm from last 2 years. I have finished my education loan and started looking at apartment to buy. I do not have the downpayment i.e 15% of the value thatI need to cash in.

My target is apartment less than 1.5Million SEK which require 225K SEK. Is there a way to take 200K private loan and then the Mortgage loan?

I can pay back the private loan quickly. The reason to hurry is because the apartment prices are relatively low now. Please share your thoughts.

I checked with SEB and they said it is not possible to take private loan and pay for downpayment. It is against law.

Regards,
Sunil


You need cash down payment. So you need 225k of your own money.

Posted by: Cheeseroller 23.Sep.2018, 03:53 AM

No, you need a cash deposit. No loans. Apartment prices are not low. They may be decreasing but this is from a hyper inflated base. Compared to other EU countries prices in Stockholm for apartments are very high. Personally, I would not buy in Stockholm now. Prices have further to fall.

Posted by: Gjeebes 23.Sep.2018, 07:26 AM

OP, just wait it out until the Riksbank inevitably raises the prime interest rate. You will see very many apartments enter the sales market due to Swedes' defaulting on their loans.

A couple years back it was estimated that an increase of a mere 350$ (US estimation) would be too much for the average debt burdened Meatballian family to handle, and their is a predicted increase in bankruptcies at the family level.

Sweden has cheated its way out of the 2008 economic crisis, but this has increased the entropy to unstable magnitudes. Buy a flat when the entropy begins returning to a more reasonable magnitude.

You will also likely be able to pick up other luxury items like BMWs rather cheaply since while the Meatballs do like high-price items, they in general can't afford them.

Oh, and OP, don't be fooled. There are reports that the Meatballs have the highest level of savings ever. But those will vanish overnight due to debt levels. And don't forget, in 2011, Swedes had the lowest level of savings in the EU!

The Swedish model: we didn't know cheap loans would ruin the economy, obvious as it is.

Posted by: skallurr 24.Sep.2018, 02:14 PM

Thank you all for the response.
Looks like I need to wait for few more months, saving a bit, with a hope of apartment rates going down.

Posted by: yet another brit 25.Sep.2018, 11:46 AM

There's nothing to stop you taking an unsecured loan and using that as a deposit. It's more that the banks no longer allow themselves to do so alongside a mortgage - they used to be OK about doing so- and they are specifically not allowed to give you a secured loan for the deposit (or put another way, not allowed to give a secured LTV above 85%).

In theory you could borrow the deposit from a "no strings" lender, but unlikely that you would find one without a good credit rating/history in Sweden...which normally means having a mortgage already! Catch 22.

So get saving :-)

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