Household debt

This page presents comprehensive information about the mortgage market and household debt that has been published on the Riksbank's website.

The Swedish mortgage market and Swedish people's mortgages are important elements of the financial system.

High indebtedness among the households in relation to earnings and assets poses risks to both macroeconomic development and financial stability.

When households have large debts, they become sensitive to interest-rate rises. In the event of a rate rise, households may be forced to reduce their consumption, especially if housing prices start to fall at the same time. This in turn reduces companies' profitability and they may be forced to make employees redundant, leading to higher unemployment. In such a scenario, both households and companies find it difficult to pay interest and amortisation on their loans, causing banks to suffer credit losses. This in turn may cause confidence in banks to waver and it may be both difficult and expensive for them to obtain funding. There is therefore a risk of economic development entering a downward spiral with serious consequences for both financial and macroeconomic stability. The Riksbank therefore closely monitors the development of household debt.

This page presents comprehensive information about the mortgage market and household debt that has been published on the Riksbank's website.

Updated 01/02/2018