Can we afford the home?
Three figures that show where the purchase lands: the debt ratio, how much of your net income housing takes at your rate and at the stress rate, and what the interest deduction returns.
Debt ratio: the loan divided by gross yearly income. A rule of thumb, no legal limit.
at your rate
at the stress rate
The average household spends 23 percent of net income on housing.
back in tax via the interest deduction
The number of borrowers sets the deduction cap
At least 10 % of the price
Household income before tax, per year
Household income after tax, per month
Monthly fee or running costs, plus power and insurance
Adjust rate
Default: SCB average rate on new mortgages, May 2026
Default: your rate plus 3 points, at least 6 percent, roughly how banks test
How we calculate
The debt ratio is the loan divided by gross yearly household income. Below 3 times income counts as low, 3-4.5 as a span to think through and above 4.5 as high. Until 1 April 2026 the 4.5 mark was the threshold for the tightened amortisation requirement, and Finansinspektionen still uses it as a benchmark for high indebtedness in its statistics. A rule of thumb, no law.
Why the bank tests a higher rate than yours
When the bank assesses your application it uses a stress rate, often around 6-7 percent, rather than the rate you actually pay. The test shows whether the budget holds when rates rise. The calculator does the same: the share of net income is shown both at your rate and at the stress rate, so you see how much the margin shrinks.
The interest deduction has a cap
The interest deduction returns 30 percent of interest costs up to 100 000 kr per person and year. The part above the cap returns 21 percent. Two borrowers who share the interest have two caps, so how the loan is split can affect how much you get back.
What is a good debt ratio?
Below 3 times gross yearly household income counts as low and 3-4.5 as a span to think through. Above 4.5 counts as high: it was the threshold for the tightened amortisation requirement until 1 April 2026 and is still used as a benchmark. A rule of thumb, no law.
Why does the bank use a higher rate than mine?
The bank tests your application against a stress rate, often 6-7 percent, to see that the budget holds if rates rise. If your budget survives the stress rate, you have a margin for rate increases.
How much of my income does housing usually take?
The average household spends about 23 percent of disposable income on housing. Households in owned houses sit around 18 percent and in apartments around 21 percent.
How does the interest deduction work?
You get a 30 percent tax reduction on interest costs up to 100 000 kr per person and year, and 21 percent on the part above the cap. Two borrowers who share the interest have two caps.
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