On May 14, 2025, SWE PRL approved the bill regarding a new model for calculating interest rate differential compensation for early repayment of fixed-rate mortgages.
The new rules will enter into force on Jul. 1, 2025.
On Dec. 5, SWE MoJ proposed changes on early mortgage repayment.
SWE MoJ proposed new rule (PDF) for calculating interest differential compensation.
Proposal by SWE MoJ has been referred to Council on Legislation for a new model for calculating interest differential compensation for early payment of tied housing loans.
New model is expected to reduce costs for consumers who want to pay off their tied mortgages early, and strengthen consumer protection and increase competition.
Specifically, measure will increase competition in the mortgage market, and reduce barriers for consumers who need to fix their interest rate, according to SWE MoJ.
New rule means that consumer's agreed credit rate will not be basis for calculation.
Instead, compensation must be decided on the basis of the change in the general interest rate that corresponds to the lender's direct costs for early payment.
Benchmark interest rate for swap interest payments agreements must be used.
Effectiveness
The amendment is proposed to enter into force on Jul. 1, 2025.
Jan. 2025 Bill Published
On Jan. 30, 2025, SWE MoJ published a bill that proposes a new model for calculating interest differential compensation for early repayment of a tied housing loan.
Proposal aims to strengthen consumer protection, increase competition in the mortgage market, reduce barriers for consumers who need to fix their interest rate.
Jan. 30 Bill Submitted to SWE PRL
On Jan. 30, 2025, SWE PRL confirmed the bill was submitted by the Ministry of Justice and assigned to Committee on Civil Affairs, with motion period ending Feb. 14, 2025.
May 2025 Bill Adopted
On May 14, 2025, SWE PRL approved the bill regarding a new model for calculating interest rate differential compensation for early repayment of fixed-rate mortgages.
The new rules will enter into force on Jul. 1, 2025.
Regulators
SWE MoJ; SWE PRL
Entity Types
Bank; CNSM; CU; MG Orig; Servicer
Reference
Bill 2024/25:CU17, Rp, PR, 5/14/2025; Bill 2024/25:97, PR, 1/30/2025; Rule, PR, 12/5/2024
