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Everything you need to know before buying real estate is included in our Sweden Property Pack
The minimum deposit required to buy property in Sweden is 15% of the purchase price for most buyers, though first-time buyers will benefit from reduced requirements starting in 2026. Understanding these deposit requirements is crucial for anyone planning to invest in the Swedish real estate market, as the rules vary significantly based on buyer status and property type.
If you want to go deeper, you can check our pack of documents related to the real estate market in Sweden, based on reliable facts and data, not opinions or rumors.
The standard minimum deposit in Sweden is 15% of the property price, with banks financing up to 85% of the property value.
Starting in 2026, first-time buyers will only need a 10% deposit thanks to new government regulations allowing 90% loan-to-value ratios.
| Buyer Type | Minimum Deposit (Current) | Minimum Deposit (From 2026) |
|---|---|---|
| Standard Buyers | 15% of property price | 15% of property price |
| First-Time Buyers | 15% of property price | 10% of property price |
| Foreign Buyers | 20-40% of property price | 20-40% of property price |
| Investment Properties | 15%+ (bank dependent) | 15%+ (bank dependent) |
| Second Properties | 15%+ (stricter criteria) | 15%+ (stricter criteria) |
What is the minimum deposit required to buy a property in Sweden?
The minimum deposit required to buy property in Sweden is 15% of the purchase price for most buyers as of September 2025.
Swedish banks typically finance up to 85% of the property value, leaving buyers to cover the remaining 15% as a deposit. This percentage is mandated by Swedish financial regulations and applies to both domestic and foreign buyers under standard circumstances.
Foreign buyers may face higher deposit requirements, typically between 20% and 40% of the property price, depending on their income history in Sweden and the bank's risk assessment. Banks evaluate each case individually, considering factors such as employment status, residency permit, and financial stability.
The 15% minimum deposit applies to all types of residential properties, including apartments, houses, and condominiums across all Swedish cities including Stockholm, Gothenburg, and Malmö.
Do I need a higher deposit if I'm a first-time buyer in Sweden?
First-time buyers in Sweden currently need the same 15% deposit as other buyers, but this will change significantly in 2026.
Starting in early 2026, the Swedish government will implement new regulations allowing first-time buyers to borrow up to 90% of the property value, reducing their required deposit to just 10% of the purchase price. This represents a substantial improvement for new buyers entering the Swedish real estate market.
The government introduced these changes specifically to help young families and first-time buyers overcome the barrier of high deposit requirements. The policy aims to increase homeownership rates and make the Swedish property market more accessible to younger generations.
To qualify for the 10% deposit option in 2026, buyers must meet specific first-time buyer criteria set by Swedish authorities, though the exact requirements are still being finalized.
It's something we develop in our Sweden property pack.
What percentage of the property price do I typically need as a deposit in Sweden?
You typically need 15% of the property price as a deposit in Sweden for standard purchases, though this varies based on buyer circumstances.
| Buyer Category | Deposit Percentage | Effective Date |
|---|---|---|
| Standard Swedish Residents | 15% | Current |
| First-Time Buyers | 10% | From 2026 |
| Foreign Buyers (Low Risk) | 20% | Current |
| Foreign Buyers (High Risk) | 30-40% | Current |
| Investment Properties | 15-25% | Current |
| Second Properties | 15-20% | Current |
| Self-Employed Buyers | 20-25% | Current |
Are there any government programs in Sweden that help with the deposit?
Sweden does not currently offer direct government grants or deposit matching schemes to help buyers with their property deposits.
The main government assistance comes through the new loan-to-value regulations starting in 2026, which allow first-time buyers to reduce their deposit requirement from 15% to 10%. This policy change represents the Swedish government's primary approach to making homeownership more accessible.
Unlike some other European countries, Sweden focuses on regulatory changes rather than direct financial assistance programs. The government prefers to work through the banking system and mortgage regulations to improve affordability rather than providing cash grants.
Local municipalities may occasionally offer housing programs for specific demographics, but these are rare and typically focused on rental housing rather than purchase assistance.
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Can I use my savings or do I need to prove the source of my deposit in Sweden?
You can use personal savings for your property deposit in Sweden, and banks will generally require documentation proving the source of these funds.
Swedish banks must comply with anti-money laundering regulations, which means they will request proof of where large deposits originate. This typically involves providing bank statements showing the accumulation of savings over time, salary slips, or documentation of any large transactions.
Foreign buyers face stricter scrutiny regarding deposit sources, particularly if the funds come from overseas accounts. Banks may request additional documentation including tax returns, employment contracts, and detailed explanations of fund transfers.
Acceptable sources include employment income, business profits, inheritance (with proper documentation), sale of other properties, and legitimate investment returns. Gifts from family members are generally acceptable but require proper documentation and may be subject to gift tax regulations.
The documentation process typically takes 2-4 weeks, so buyers should prepare these documents early in the mortgage application process.
Do Swedish banks require a specific credit score for mortgage approval and how does that affect the deposit?
Swedish banks do not use the FICO credit scoring system but instead evaluate creditworthiness through income verification, existing debt levels, and payment history records.
Banks access information from UC (Upplysningscentralen), Sweden's main credit information company, which maintains records of payment defaults, bankruptcies, and credit applications. A clean UC record significantly improves mortgage approval chances and may allow for the minimum 15% deposit.
Poor credit history or existing high debt levels may result in banks requiring higher deposits, typically 20-25% instead of the standard 15%. In severe cases, banks may reject mortgage applications entirely regardless of deposit amount.
Foreign buyers without Swedish credit history face additional challenges and often need to provide alternative proof of creditworthiness through bank references from their home country and higher deposits of 25-40%.
It's something we develop in our Sweden property pack.
How does the deposit requirement change if I'm buying a second property or investment property in Sweden?
Deposit requirements for second properties and investment properties in Sweden are typically higher than the standard 15% minimum for primary residences.
Banks consider second property purchases as higher risk investments and may require deposits ranging from 20% to 30% of the purchase price. The exact percentage depends on the buyer's overall financial profile, existing debt levels, and the property's location and condition.
Investment properties intended for rental income face even stricter requirements, with some banks demanding deposits of 25-40%. Banks evaluate the property's rental potential and may require proof of projected rental income when calculating affordability.
Buyers with shorter Swedish residency history or those purchasing properties in less desirable locations may face additional deposit requirements regardless of whether it's their second or third property purchase.
Are there any fees or costs added to the deposit amount in Sweden, like stamp duty or registration fees?
Sweden does not charge stamp duty on residential property purchases, making it one of the most cost-effective European markets for property transactions.
The main additional cost is a mortgage deed fee (pantbrev) of approximately 2% of the mortgage amount, not the total property price. For example, on a 3 million SEK property with a 15% deposit, the mortgage would be 2.55 million SEK, resulting in a deed fee of about 51,000 SEK.
Property registration fees are minimal, typically around 1,500-3,000 SEK for standard residential transactions. Legal fees range from 10,000-25,000 SEK depending on the complexity of the transaction and whether you use a lawyer or handle the process yourself.
Buyers should budget an additional 2.5-3% of the purchase price for all transaction costs combined, which is significantly lower than many other European countries.
Can I borrow money for the deposit in Sweden, or does it have to come from my own funds?
You can technically borrow money for the deposit through personal loans, but this approach faces significant restrictions and scrutiny from mortgage lenders.
1. **Bank Policy Concerns**: Most Swedish banks prefer deposits to come from buyers' own funds and will investigate any borrowed money used for deposits 2. **Affordability Impact**: Personal loans for deposits increase your total debt-to-income ratio, potentially leading to mortgage rejection 3. **Higher Interest Rates**: Personal loans carry much higher interest rates than mortgages, typically 6-12% compared to 3-5% for mortgages 4. **Limited Loan Amounts**: Personal loans for deposit purposes are usually capped at 100,000-200,000 SEK, insufficient for most property deposits 5. **Credit Risk Assessment**: Banks factor personal loan debt into their overall risk assessment, often requiring higher deposits when borrowed funds are detectedMost successful buyers combine personal savings with family loans or gifts, which are more acceptable to banks when properly documented.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Sweden versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How much of the property value will Swedish banks finance and how does this impact the deposit?
Swedish banks currently finance up to 85% of the property value for standard buyers, directly determining the 15% minimum deposit requirement.
The loan-to-value (LTV) ratio of 85% is regulated by Finansinspektionen (Swedish Financial Supervisory Authority) and applies uniformly across all major Swedish banks including Swedbank, Handelsbanken, SEB, and Nordea.
Starting in 2026, first-time buyers will benefit from increased LTV ratios of 90%, reducing their deposit requirement to 10% of the property value. This change specifically targets young buyers and families entering the property market for the first time.
Income multiples also affect financing, with Swedish banks typically lending no more than 4.5 times annual gross income. This means even with a sufficient deposit, buyers must demonstrate adequate income to support the mortgage payments.
Foreign buyers and those with limited Swedish credit history may only receive 60-80% LTV, requiring deposits of 20-40% regardless of their income levels.
Is the deposit refundable if my mortgage application is rejected in Sweden?
The deposit refundability in Sweden depends entirely on the terms negotiated in your purchase contract, as there is no automatic legal protection for buyers.
Standard Swedish property purchase contracts require deposits to be paid upon signing, typically 5-10% of the purchase price, and these deposits are generally non-refundable unless specific conditions are included in the contract.
To protect yourself, you must negotiate a conditional purchase contract that includes a "subject to financing" clause. This clause makes the sale contingent on obtaining mortgage approval and allows deposit recovery if financing is rejected.
Most experienced buyers and real estate agents recommend including financing contingency clauses with specific deadlines, typically 2-4 weeks after contract signing. Without these clauses, you risk losing your entire deposit if the mortgage application fails.
It's something we develop in our Sweden property pack.
What is the process of transferring the deposit to the seller in Sweden, and when does it happen?
The deposit transfer process in Sweden occurs immediately after signing the purchase contract, typically within 1-3 business days.
The deposit is transferred to either the real estate agent's client account or directly to the seller's designated account, depending on the agreement terms. Most transactions use the agent's escrow account for security purposes.
Swedish property purchases follow a two-step process: first the purchase contract signing with deposit payment, then the final closing when ownership officially transfers. The time between these steps is typically 4-8 weeks, allowing time for mortgage processing and legal documentation.
At closing, the remaining balance (minus the deposit already paid) is transferred to complete the purchase. The seller receives the full payment, and the buyer receives the property deed and keys simultaneously.
All transfers must be documented for tax purposes, and banks require proof of deposit payment as part of the mortgage approval process.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding deposit requirements is crucial for successful property investment in Sweden, as the 15% standard requirement can represent a significant financial commitment.
The upcoming changes in 2026 for first-time buyers present an excellent opportunity for new investors to enter the Swedish real estate market with reduced upfront costs.