Polls show Sweden’s Social Democratic Party are likjelt to win next month’s election.

The Social Democratic Party say a rule that prevents Swedes getting loans worth more than 85 percent of property values hurts first-time buyers

  • According to Magdalena Andersson, the party’s economic spokeswoman, the Social Democrats may seek to ease the loan-to-value cap if the regulator introduces rules that force households to amortize their mortgages. Less well-off households would be exempt from any amortization requirements, she said.
  • “It’s important when we take measures that we don’t for example exclude young families,” Andersson said in an Aug. 23 interview south of Stockholm. “The mortgage cap is undeniably something that creates bigger problems for young people.”
    The proposal, which would reverse a 2010 limit put in place during Reinfeldt’s tenure to contain record household debt, risks colliding with central bank pleas to slow credit growth.

More here and at Bloomberg: Swedish Debt Cap May Be Relaxed as Social Democrats Reveal Plans