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Sweden to impose stricter mortgage rules from March 2018

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Sweden to impose stricter mortgage rules from March 2018

Stricter rules on mortgage repayments imposed by the Swedish financial supervisory authority will take effect in March 2018, Reuters reported.

The watchdog said in May it would impose stricter amortization requirements for highly indebted households to protect financial stability.

The new rules would force households with high level of debt in relation to their income and household value to amortize at least 3% of their mortgage every year.

Following a formal decision in November, the financial supervisory authority would then ask the Swedish government to approve the new rules, Reuters added.