Cash deposit and handpenning

How big a deposit do I need?

At least 10 percent of the price. When the bank grants a mortgage, it must ensure that the loan is at most 90 percent of the property's market value when you buy it. If the market value is 3,000,000 kronor, at least 300,000 kronor in cash is required. The rule is stated in the law (2026:226) on limitation of housing credits, which applies from 1 April 2026. Before that, the mortgage ceiling was 85 percent and was stated in the Swedish Financial Supervisory Authority's general advice, which the Swedish Financial Supervisory Authority proposed to repeal on the same day.

Source: Act (2026:226) on limitation of housing loans (riksdagen.se), Financial Supervisory Authority: FI's view on an increase in the mortgage cap from 85 to 90 per cent (pdf), Financial Supervisory Authority: FI proposes that the amortisation regulations and the general guidelines on mortgage caps be repealed, Konsumentverket (the Swedish Consumer Agency): Buying a tenant-owned apartment, tips on what to consider. Sections 4 and 13 of the Act (2026:226).

What is the difference between a deposit and a cash contribution?

The cash deposit says how much of the price you pay yourself. The handpenningen says when a part of the price is paid: when the purchase contract is signed, often several weeks or months before the move-in date. The handpenningen is deducted from the purchase price, so it costs nothing extra. It is usually paid with a part of the cash deposit, since the mortgage is paid out first on the move-in day.

Source: Fastighetsmäklarinspektionen: Client funds, Fastighetsmäklarinspektionen: Contract writing.

How large is the deposit?

The amount is stated in the purchase contract and is determined by the seller and the buyer. No law specifies how large the deposit should be. The deposit is the seller's security if the buyer does not complete the purchase, and the Real Estate Agent Inspectorate writes that the agent should do what they can to ensure the buyer pays a sufficiently large deposit. Ask the agent about the amount before you make a bid, so you have the money in your account when the contract is to be signed.

Source: Fastighetsmäklarinspektionen: Client funds, Fastighetsmäklarinspektionen: Contract writing.

Where does the deposit go?

If the agent receives the deposit, it should be passed on to the seller as soon as possible. If the purchase is conditional, for example on obtaining a loan or an inspection, the deposit can instead remain on the agent's client funds account until the condition is met. This requires a written deposit agreement between the seller, the buyer, and the agent. The money on the client funds account is kept separate from the agent's own funds.

Can I borrow for the deposit?

Yes, but not with the home as security. The amount exceeding 90 per cent of the value can only be borrowed without security, with an unsecured loan. Konsumentverket writes that it results in a higher interest rate, since the home is not used as security. An unsecured loan that you take out to buy a home is still considered a mortgage, according to Konsumenternas. Consider both loans when making your budget.

Source: Konsumentverket: Buying tenant-owned apartment, tips what you should consider, Consumers': Mortgage loans.

What is a deposit loan?

A loan to pay the deposit before the mortgage is paid out. Consumers writes that deposit loans that you take with security in the home are counted as mortgages. Ask the bank about the terms when you apply for the loan promise, so that the deposit and mortgage are connected.

Source: Consumers': Loans.

How much must I amortize?

It depends on how large a part of the home's value you borrow. Over 50 percent you should amortize at least 1 percent of the loan per year, and over 70 percent at least 2 percent. With the smallest cash contribution, you borrow 90 percent and amortize at least 2 percent per year.

The cash deposit step by step

1. 1

   Step 1: Calculate the cash contribution: at least 10 percent of the price. The bank may lend out at most 90 percent of the home's value.

   § 4 and 5 §§ of the law on limitation of housing credits (2026:226), verified on 5 October 2026

2. 2

   Step 2: Get a loan promise before you place a bid. It shows how much the bank can lend to you.

3. 3

   Step 3: Have the deposit available in your account when the contract is signed, as the mortgage is paid out on the day of entry. our advice

4. 4

   Step 4: Read in the purchase contract how large the deposit is, when it should be paid and if it should be held in the estate agent's client funds account.

5. 5

   Step 5: If there are conditions in the contract, such as an inspection clause, request that the deposit be deposited with the estate agent with a written deposit agreement.

   § 3 chapter 4 § property brokerage law (2021:516), verified 5 October 2026

6. 6

   Step 6: Pay the rest of the purchase price on the day of entry, with the mortgage and the rest of the cash deposit.

What else does the purchase cost?

If you buy a house, you also pay stamp duty for the deed and for new mortgages. Calculate them in the guide to deed and mortgage. For a tenant-owned apartment, there is no deed. What happens on the day of entry, when the rest of the purchase price is paid, is stated in the guide to entry.

The law behind it

The sections summarised, with a link to the legal text on riksdagen.se.