Can foreigners get mortgages in Sweden easily?

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sweden. If you'd like to learn more about us, you can check our presentation page.

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Can I legally get a mortgage in Sweden as a non-Swedish citizen or non-resident?

Yes, you can legally get a mortgage in Sweden as a non-Swedish citizen or non-resident, but the practical reality is much more challenging.

Swedish property ownership laws do not restrict foreigners from purchasing real estate, and there are no legal barriers preventing non-citizens from obtaining mortgages. However, Swedish banks have strict lending policies that make mortgage approval extremely difficult for foreigners without established ties to Sweden.

Most Swedish lenders require borrowers to demonstrate strong connections to the Swedish economy, typically through employment, residency, or significant business operations in the country. Banks view non-resident applications as higher risk due to difficulties in credit assessment, income verification, and potential collection challenges.

As of September 2025, the vast majority of successful foreign mortgage applicants either already live in Sweden with proper residency status or work for major multinational companies with strong Swedish operations. Independent contractors, remote workers, or those seeking to purchase purely as investment properties from abroad face near-certain rejection.

It's something we develop in our Sweden property pack.

Do I need a Swedish personal identity number (personnummer) or can I apply without one?

A Swedish personal identity number (personnummer) is effectively required by virtually all Swedish banks for mortgage applications.

While it's technically possible to apply without a personnummer, nearly every major Swedish lender—including SEB, Swedbank, Handelsbanken, and Länsförsäkringar—requires this number as part of their standard lending criteria. The personnummer is essential for banks to conduct credit checks, verify income, and assess borrowing capacity within the Swedish financial system.

In extremely rare cases, some banks may consider applications from foreigners with exceptionally strong international credit histories or substantial wealth management relationships, but these exceptions are extraordinarily uncommon. Even when banks consider such applications, they typically require significantly higher down payments and more extensive documentation.

EU citizens who have moved to Sweden can obtain a personnummer relatively quickly after establishing residency, while non-EU citizens must secure appropriate residency permits first. Without a personnummer, your primary options become international bank financing from your home country or all-cash purchases.

Which Swedish banks or lenders actually accept foreign applicants, and what are their main conditions?

The major Swedish banks that occasionally consider foreign applicants include SEB, Swedbank, Handelsbanken, and Länsförsäkringar, though their acceptance criteria are extremely stringent.

Bank	Foreign Applicant Policy	Key Requirements
SEB	Limited acceptance with residency	Personnummer, Swedish employment, 20%+ down payment
Swedbank	Rare exceptions for wealth clients	Substantial assets, local business ties, extensive documentation
Handelsbanken	Case-by-case for residents	Swedish residency, stable income, existing bank relationship
Länsförsäkringar	Regional variations, mostly residents	Local employment, personnummer, higher equity requirements
Specialist Brokers	Expat-focused services	Higher fees, limited success rate, extensive documentation

Each bank maintains different policies, with some regional variations in Länsförsäkringar's case. Mortgage brokers specializing in expatriate buyers sometimes help navigate these requirements, though success rates remain low for non-residents.

All banks require comprehensive income verification, typically favoring Swedish employment contracts over foreign income sources. International employers must be well-established, recognizable companies for banks to consider foreign employment documentation.

What is the minimum down payment foreigners are required to put in, compared to Swedish citizens?

Foreigners typically face higher down payment requirements than Swedish citizens, ranging from 20% to 40% of the property value.

Swedish residents with personnummer can secure mortgages with the standard minimum down payment of 15% of the property's purchase price. However, banks routinely require foreign applicants to provide substantially larger down payments as a risk mitigation measure.

Most foreign applicants approved for Swedish mortgages provide down payments between 20% and 30% of the property value. Non-residents without Swedish credit history or those applying from abroad often face requirements of 35% to 40% down payment, significantly higher than local standards.

These elevated requirements reflect banks' risk assessment of foreign borrowers, considering factors like currency exchange risk, difficulty in income verification, and potential challenges in loan recovery. Larger down payments also demonstrate financial commitment and reduce the bank's exposure to potential losses.

Cash-rich foreign buyers sometimes find it more practical to purchase properties outright rather than navigating the complex mortgage approval process with its elevated down payment requirements.

How much income or salary do I need to show in Sweden or abroad to qualify?

Swedish banks don't specify fixed minimum income amounts but require sufficient income to support debt servicing, typically following a debt-to-income ratio of 4.5 to 5 times annual income.

Banks calculate mortgage eligibility based on your total monthly income after taxes, existing debt obligations, and living expenses. For a mortgage of 3 million SEK (approximately the median property price in Stockholm), you'd typically need to demonstrate annual income of at least 600,000 to 700,000 SEK before taxes.

Foreign income verification is significantly more complex and stringent. Banks require several years of tax returns, employment contracts, and bank statements, all translated into Swedish. Self-employed applicants face even higher scrutiny, needing to provide comprehensive business financial statements and proof of consistent income over multiple years.

Income stability matters more than absolute amounts—banks prefer borrowers with steady employment history over those with higher but variable incomes. Commission-based or freelance income typically requires longer documentation periods and may be discounted in banks' calculations.

Currency considerations also apply when foreign income is involved, as banks may apply conservative exchange rate assumptions or require additional financial buffers to account for potential currency fluctuations.

Do I have to show proof of stable employment in Sweden, or will foreign employment contracts be accepted?

Swedish banks strongly prefer proof of stable Swedish employment, though they may accept foreign employment contracts under specific circumstances.

Local Swedish employment provides banks with familiar income verification processes, predictable tax structures, and easier assessment of job security. Employers like major Swedish corporations, government agencies, or well-established international companies with Swedish operations typically satisfy bank requirements most easily.

Foreign employment contracts are occasionally accepted, but only from reputable multinational corporations or organizations that banks can easily verify and assess. Companies must be well-known, financially stable entities that banks can research and validate independently.

The documentation requirements for foreign employment are substantially more extensive. Banks typically require employment contracts, several years of payslips, tax returns from the foreign country, verification letters from employers, and sometimes additional character references or financial guarantees.

Self-employment, freelance work, or contracts with smaller foreign companies are rarely accepted, regardless of income levels. Banks view these arrangements as too risky due to income volatility and verification difficulties.

It's something we develop in our Sweden property pack.

What interest rates and loan terms do foreigners usually get compared to locals?

Foreigners who successfully obtain Swedish mortgages typically receive interest rates similar to or slightly higher than Swedish residents, with current rates around 3% to 3.1% as of September 2025.

Swedish mortgage interest rates are primarily determined by the central bank's policy rate and overall market conditions rather than borrower nationality. However, foreign applicants may face slightly elevated rates due to perceived higher risk or additional administrative complexity.

Loan terms for foreigners are generally less favorable than for Swedish residents. While Swedish citizens can often secure 30-year mortgages with flexible repayment options, foreign borrowers may face shorter loan terms, stricter repayment schedules, or additional collateral requirements.

Banks may also impose additional conditions on foreign borrowers, such as requirements to maintain higher account balances, restrictions on renting out the property, or mandatory life insurance policies. These conditions effectively increase the total cost of borrowing beyond the stated interest rate.

Variable rate mortgages are standard in Sweden, with most loans tied to the bank's reference rate. Foreign borrowers have the same access to these products but may face more restrictive terms for switching between lenders or refinancing options.

Are there extra fees, taxes, or insurance costs for foreigners buying property in Sweden?

Foreigners face the same basic property-related taxes and fees as Swedish residents, with total transaction costs typically ranging from 3% to 4% of the purchase price.

1. **Property taxes**: Annual property tax (fastighetsskatt) of 0.75% to 1% of assessed value applies equally to all property owners regardless of nationality. 2. **Registration fees**: Property registration fees of approximately 1.5% of purchase price are standard for all buyers. 3. **Legal and administrative costs**: Notary fees, property inspection costs, and legal representation typically add 1% to 2% to transaction costs. 4. **Mortgage-related fees**: Application fees, valuation costs, and mortgage registration fees are standard regardless of buyer nationality. 5. **Insurance requirements**: Property insurance is mandatory for mortgage holders, with costs similar between foreign and domestic buyers.

While base fees remain consistent, foreign buyers may incur additional costs for document translation, international money transfers, currency exchange, and specialized legal advice for cross-border transactions.

Some banks may require foreign borrowers to purchase additional life insurance or maintain higher property insurance coverage, marginally increasing ongoing costs. However, there are no discriminatory taxes or fees specifically targeting foreign property buyers in Sweden.

What documents will the bank typically ask for from a foreign applicant?

Swedish banks require extensive documentation from foreign mortgage applicants, significantly more than what Swedish residents must provide.

1. **Identity verification**: Valid passport, national ID card, and sometimes birth certificate with certified translations. 2. **Income documentation**: Multiple years of tax returns, employment contracts, payslips for the past 12-24 months, and employer verification letters. 3. **Financial statements**: Bank statements from all accounts for 6-12 months, investment account statements, and proof of savings for down payment. 4. **Credit history**: Credit reports from home country and any other countries of previous residence, often requiring certified translations. 5. **Property documentation**: Purchase agreement, property valuation report, and insurance quotations for the intended property. 6. **Legal documentation**: Proof of legal right to reside in Sweden (if applicable), marriage certificates, divorce decrees, or other relevant personal documentation. 7. **Professional verification**: Business registration documents for self-employed applicants, audited financial statements, and professional references.

All foreign-language documents typically require certified translations into Swedish, adding time and cost to the application process. Banks may also request additional documentation during the review process, particularly for complex financial situations or non-standard employment arrangements.

Document verification can take several weeks, as banks often need to verify foreign employers, educational institutions, and financial institutions independently.

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.

Is it easier to get approved if I already live and work in Sweden with residency, or can I apply directly from abroad?

Foreign applicants already living and working in Sweden with residency status have dramatically higher mortgage approval rates compared to those applying directly from abroad.

Residents with Swedish personnummer, local employment, and established banking relationships face approval processes similar to Swedish citizens. Banks can easily verify income, assess creditworthiness, and understand employment stability when applicants are already integrated into the Swedish financial system.

Direct applications from abroad are rarely successful unless applicants work for major multinational corporations or have substantial wealth management relationships with Swedish banks. The practical challenges of income verification, credit assessment, and legal compliance make these applications extremely difficult for banks to process.

Established residents benefit from Swedish credit history, local employment verification, and familiar tax documentation that banks can easily assess. They also demonstrate commitment to remaining in Sweden, reducing banks' concerns about loan security and borrower flight risk.

Non-residents applying from abroad often find it more practical to establish residency first, work in Sweden for 6-12 months to build credit history, and then apply for mortgages rather than attempting direct foreign applications.

It's something we develop in our Sweden property pack.

What types of property can foreigners buy with a mortgage in Sweden—houses, apartments, or only certain categories?

Foreigners can purchase all types of residential property in Sweden with mortgages, including houses, apartments, and tenant-owned cooperative apartments (bostadsrätter), with no legal restrictions based on nationality.

Swedish property ownership laws treat foreign buyers identically to domestic buyers regarding property types. This includes detached houses, townhouses, condominiums, cooperative apartments, and vacation properties across all regions of Sweden.

However, practical considerations may influence bank lending decisions. Banks may view certain property types as higher risk for foreign borrowers, particularly vacation homes or properties in remote areas where resale might be challenging. Urban properties in Stockholm, Gothenburg, or Malmö typically face fewer lending restrictions.

Cooperative apartments (bostadsrätter) require additional approval from the cooperative board, which may apply different criteria to foreign buyers. While legal discrimination is prohibited, some cooperatives may prefer buyers who will occupy the property rather than rent it out.

Commercial properties, agricultural land, and forestry properties may face additional restrictions or require special permits, but these limitations apply to all buyers, not specifically to foreigners. Banks also tend to be more conservative with commercial property lending to foreign applicants.

How long does the whole process usually take from application to getting the mortgage approved?

The mortgage approval process for foreign applicants typically takes several months, significantly longer than the 2-6 weeks standard for Swedish residents.

Document collection and preparation often consume 4-8 weeks before formal application submission, as foreign applicants must gather extensive documentation, obtain certified translations, and verify foreign employment or income sources.

Bank processing times for foreign applications range from 6-12 weeks once complete documentation is submitted. Banks require additional time to verify foreign employers, validate international credit histories, and assess non-standard documentation that doesn't fit their typical processing frameworks.

Additional delays commonly arise from requests for supplementary documentation, clarification of foreign income sources, or requirements for additional guarantees or collateral. Currency transfer arrangements and international banking coordination can add further complexity.

In contrast, Swedish residents with established credit history and local employment can often receive mortgage approval within 2-3 weeks of application, highlighting the substantial additional complexity foreigners face in the Swedish mortgage market.

Emergency or expedited processing is rarely available for foreign applicants, as banks cannot shortcut their enhanced due diligence requirements for international borrowers.

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.

Sources

1. Wise - Mortgage in Sweden
2. InvestRopa - Buying House Sweden
3. InvestRopa - How to Buy House in Sweden as American
4. Wise - Buying Property in Sweden
5. InvestRopa - Can Americans Buy Property Sweden
6. Länsförsäkringar - Mortgage Information
7. Ace Money Transfer - Foreigners Buy Property Sweden
8. Swedbank - Mortgage Services
9. Minddig - Banking in Sweden
10. Lantmäteriet - Property Registration