belåningsgraden

Belåningsgraden, or loan-to-value ratio, is a key metric used by lenders when assessing the risk associated with a mortgage loan. It represents the percentage of a property's value that is financed by a mortgage. The calculation is straightforward: the loan amount is divided by the property's market value, and the result is expressed as a percentage. For example, if a property is valued at 1,000,000 SEK and the mortgage is for 800,000 SEK, the belåningsgraden is 80%.

Lenders use belåningsgraden to determine how much equity the borrower has in the property. A lower belåningsgraden generally signifies lower risk for the lender, as the borrower has a larger financial stake in the property. This can sometimes translate to more favorable loan terms for the borrower, such as lower interest rates or less stringent requirements. Conversely, a higher belåningsgraden indicates greater risk for the lender. In many countries, there are regulatory limits on the maximum belåningsgraden that can be offered, often set at 85% or 90% of the property's value. This is to ensure borrowers maintain a reasonable level of personal investment and to mitigate systemic risks within the housing market.