This is so that people would not buy houses that they could not afford and thus instead get a larger buffer in case the housing dropped in value. Now you are in the process of supplementing this with a requirement for amortization as well.
The requirement isf would be approximately that in 20 years, one must have repaid his loan to 60% of the value. This means that if your home is worth USD 1 million and you have a loan of 85% you would be forced to repay USD 1,042 each month. If you double the value of the house, the requirement will also be twice as large and will end up at USD 2,084.
Economy is so much more than just accommodation”. He also says that people with low interest rates would receive a one-third increase in costs every year if 1% were to be amortized. Which would be a very tough blow to many borrowers who do not have that space.
Firstly, we should make it clear that Hemberg works for Avanza, which does not lend any money to mortgages but works shares, funds, etc. Which of course makes him think it’s better for people to save there than to repay their loans.
Then I also think that you miss a large part of the point with such an introduction. In my opinion, it is not intended to be ugly towards people who lend, but it is to help people. I have said many times that it is not a right to buy an expensive house. What I think is a right is to try to buy a house that you can afford. That you then have to repay part of the debt in the long run I think is a natural part of the whole.
I own mortgages and have an amortization rate
That is roughly at the double rate of what is proposed. Then, of course, I think that one should not have too stringent requirements when it comes to repaying quickly. But making a certain payment every month feels reasonable, since the risk becomes clearly less if something negative should happen. For us to have clear that the home can lose value. For example, do you live in a smaller town that has a large industry where many work. What happens to the house price if this factory chooses to move to China?
So the question I think is not asked is why are people allowed to borrow money when it is just on the verge that they will be able to meet the interest costs? And that they are thus unable to repay.
Then of course I realize that there are exceptions where you could afford when you bought the house but have got it tougher financially afterwards which would make it tough to start amortizing.