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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 11.Nov.2019, 05:22 PM
Post #1
Joined: 11.Nov.2019

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 11.Nov.2019, 07:02 PM
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 11.Nov.2019, 09:57 PM
Post #3
Joined: 11.Nov.2019

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 12.Nov.2019, 07:41 AM
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 12.Nov.2019, 10:25 AM
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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TheExpatEagle
post 12.Nov.2019, 07:08 PM
Post #6
Location: Skåne
Joined: 23.Aug.2016

QUOTE (Shasla @ 11.Nov.2019, 10:57 PM) *
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 w ... (show full quote)


Yes they provided a reason, I didn't have credit history to suggest I could repay the mortgage.

Renting isn't unpleasant, I currently rent and it is perfectly fine.

They might not approve you if you can't pass the economic test to show you can pay the avgift every month.

When you buy an apartment you are part owner in the association. So you own a share and the checks are different for each one. I am not saying they are tough but the shareholders have a lot of power even to the extent they can force people to sell their apartments in certain circumstances.
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Vladden
post 13.Nov.2019, 08:28 AM
Post #7
Joined: 14.Mar.2018

I'd say "no" to all your questions.

In my view, the only viable option is if you have a property in Hungary, use it as a collateral to raise the debt in Hungary and use this money for your purchase in Sweden.
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Mpf
post 14.Nov.2019, 12:56 PM
Post #8
Location: Stockholm
Joined: 5.Jul.2006

It appears you can apply for a mortgage in Sweden without a personal number. For a private loan a personal number and residency of at least 1 year are required however. <a href="https://lawline.se/answers/get-a-mortgage-without-a-swedish-personal-number" target="_top">https://lawline.se/answers/get-a-mortgage-w...personal-number</a>

Also see: https://europa.eu/youreurope/citizens/consu...es/index_en.htm
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pepitoAndalucia
post 15.Nov.2019, 10:01 PM
Post #9
Joined: 3.Jun.2018

QUOTE (Shasla @ 11.Nov.2019, 06:22 PM) *
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 ... (show full quote)


I'd move to the UK if I was you or even Germany since you speak a bit of German.
Stay away from sweden, seriously. You are going to buy an apartment wihout even moving in first?!. Don't be that crazy. You will make a swede richer and you will be in debt.

The UK and Germany are way more open countries. Here it's all excuses. This is not like the rest of Europe.

Seriously don't be a fool.
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TheExpatEagle
post 16.Nov.2019, 07:43 PM
Post #10
Location: Skåne
Joined: 23.Aug.2016

QUOTE (pepitoAndalucia @ 15.Nov.2019, 11:01 PM) *
I'd move to the UK if I was you or even Germany since you speak a bit of German.Stay away from sweden, seriously. You are going to buy an apartment wihout even moving in f ... (show full quote)


#FakeNews

I'm English and I would not move to the UK over Sweden. But you keep your lies going because the fewer that move to Sweden the better it is.
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skogsbo
post 17.Nov.2019, 06:14 PM
Post #11
Joined: 20.Sep.2011

QUOTE (pepitoAndalucia @ 15.Nov.2019, 10:01 PM) *
I'd move to the UK if I was you or even Germany since you speak a bit of German.Stay away from sweden, seriously. You are going to buy an apartment wihout even moving in f ... (show full quote)

Having lived and worked in both, I have absolutely no intention of returning to the UK for anything other than a short holiday.



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