How to buy an apartment in Sweden, step by step
Buying a property abroad can be daunting, but in Sweden the apartment-buying process often moves fast and has fewer additional fees than in many countries, making it an appealing option compared to the precarious rental market. We've outlined the steps you need to take and the pitfalls to look out for in this guide for potential buyers.
1. Decide if buying is right for you and set your budget
Historically, buying property has been a good investment in Sweden but it is an investment that carries risk.
Whether or not you should buy depends on a range of factors including how long you expect to stay in Sweden, whether or not you have access to a stable first-hand rental contract, your budget, and of course your personal preference. And new arrivals may find it harder to buy; although there are no rules stopping non-residents from buying, it can be hard to get a mortgage without a history of income in Sweden. We’ve outlined the pros and cons in detail in the following article:
If you decide buying is the route for you, you’ll want to begin researching properties available in your preferred area to decide on your budget and which features are must-haves.
2. Get a loan promise
Once you know how much the properties you are interested in cost and how much you think you can afford, it’s time to talk to the bank.
A loan promise (lånelöfte) isn’t a necessity when you attend viewings, but because the market tends to move fast it is generally a good idea to speak to your bank before you start the process. Make sure to shop around and speak to different banks, as some may offer better deals, although you don’t have to take out a mortgage with the one that gives you a loan promise.
When you buy a house in Sweden, you’ll usually need to pay a minimum of 15 percent of the total price as a deposit (kontantinsats), so the remaining amount will be covered by the mortgage. You’ll pay back a certain amount each month over a fixed length of time, often 25 or 50 years. If your deposit is less than 15 percent, then your mortgage will be split into two different loans, including one that covers the cost up to 15 percent of the total price which will typically have a higher interest rate and a shorter term.
Find out more about how the system works and how to choose your mortgage wisely in this article:
3. Go to viewings
Now the fun part begins as you can start your search in earnest. Most apartments in Sweden are advertised on property site Hemnet, but you can also speak directly to estate agents. Researching as early as possible will help you get a feel for typical prices per square metre, and what type of place and location you can afford.
Once you have found a few places that pique your interest, it’s time to start going to viewings. Usually these take place on Sunday afternoons and Monday or Tuesday evenings, with two initial viewings per apartment, but this may vary. Viewings are often just 30 minutes long and as a buyer, you cannot later claim compensation for any flaws in the property that you could reasonably be expected to have identified at the viewing, so use the time wisely. You should be on the lookout for things like damp, mould or pests, but also whether the layout suits your lifestyle and whether any renovations are needed. The more viewings you go to, the more you will get a feel for exactly what you want from your Swedish home.
A tip: it’s sometimes possible to skip the bidding process (see step 7) if you can arrange a pre-viewing and put in the right offer before anyone else is given a chance to see the apartment. You can do this either by contacting estate agents directly and sharing your requirements (many agents will advertise apartments before they go on the market described as kommande försäljningar or “upcoming sales”), or by acting fast and asking for an early showing as soon as an apartment you like is published on Hemnet (usually Fridays).
