- We want more young people, not just those with parents with really thick wallets, to be able to enter the housing market and own their own home. Therefore, we propose a higher mortgage ceiling, says Elisabeth Svantesson (M), who is the Moderates' economic policy spokesperson, to SVT News.

Today's mortgage ceiling was introduced almost nine years ago by the Swedish Financial Supervisory Authority. The idea was to reduce household indebtedness and dampen the price trend in the housing market. Just over three years ago, an amortization requirement of at most 2 percent of the value of the home was also introduced, a requirement that was sharpened last year by an additional percentage point for those who lend over a certain limit in relation to their income. It is the amortization requirements that, according to the Moderates, justify that the mortgage ceiling can now be increased.

- Now we have repayment requirements that bite pretty hard on those with a high loan-to-value ratio, and that is why I see that a lowered mortgage ceiling allows more young people to enter at the same time as we have a healthy amortization culture in Sweden, says Elisabeth Svantesson.

May lead to increased demand

At the same time, there is much evidence that a higher mortgage ceiling will lead to increased demand and thereby higher housing prices. In short, more people are forced to lend a higher amount to their home, which can remove the effect of raising the mortgage ceiling. Elisabeth Svantesson admits that there is a risk of higher housing prices, but at the same time she is reducing this risk.

"In the short term, this may affect the price picture, but with today's amortization requirements, we still believe that the effect will be marginal for housing prices," she says.