STOCKHOLM, Nov 30 (Reuters) - Sweden’s government gave the go-ahead on Thursday for the financial watchdog to impose tougher mortgage repayment rules
STOCKHOLM, Nov 30 (Reuters) – Sweden’s government gave the go-ahead on Thursday for the financial watchdog to impose tougher mortgage repayment rules on big borrowers, despite warnings the regulation could deepen recent house price falls.
Earlier this month, the Financial Supervisory Authority proposed that households who take new mortgages bigger than 4.5 times their gross income should make bigger monthly payments.
“We need to reduce the risk for a serious economic crisis in Sweden,” Financial Markets Minister Per Bolund told a news conference.
Property prices have risen much more than wages over the last couple of decades and authorities have long warned high debt levels are a threat to the economy. (Reporting by Stockholm Newsroom; editing by Niklas Pollard)