The Swedish government's recent decision to raise the mortgage ceiling from 85% to 90% has significant implications for potential homebuyers. According to Alexander Norén, a commentator on the changes, this adjustment aims to make it easier for individuals to purchase their first homes by lowering the upfront cash requirement. For instance, a home costing one million kronor now requires only a 100,000 kronor down payment, instead of the previous 150,000 kronor, which could encourage more entry-level buyers to enter the housing market.

However, the relaxation of borrowing restrictions has sparked concerns among several critics regarding the possible repercussions on housing prices. The Financial Supervisory Authority of Sweden (Finansinspektionen) warned that while the move is intended to facilitate home purchases, it may paradoxically result in higher property prices. They suggested that increased demand, combined with the ability to borrow more, could push prices upwards, potentially locking out more buyers from the market entirely, especially in urban areas where demand is already high.

Real estate agents anticipate significant price rises, particularly for smaller apartments in metropolitan regions, with estimates of increases around ten percent being discussed. This situation raises questions about market accessibility and affordability, as the intended benefits of the new regulations may inadvertently create a tighter squeeze on new buyers due to inflated housing costs, leading to a more complicated housing landscape in Sweden's major cities.