A mortgage pre-approval is not a guarantee — how it actually works

A mortgage pre-approval (laneloftet) says that the bank, based on your finances right now, assesses that you can probably borrow up to a certain amount. It is not a contract. It is not binding. And it can be withdrawn.

The most common misconception: “I have a pre-approval for SEK 3.5 million, so I can buy for SEK 3.5 million.” Not necessarily.

When the bank still says no

It happens for four common reasons.

The property is valued lower than the purchase price. You win the bidding at SEK 3,200,000 but the bank’s valuer sets SEK 2,900,000. The loan-to-value ratio (belaningsgrad) becomes too high and the loan is not approved.

Your finances have changed since the pre-approval. A new loan, sick leave, a new job with a probationary period, or a credit card balance that has increased. The bank runs a new check when you actually apply for the mortgage.

The housing association (bostadsrattsforening/BRF) has problems. The bank assesses not just you but also the association. High leverage, a missing maintenance plan or a very small association can be enough for the bank to decline. Read more about housing association finances to understand what the bank looks at.

The pre-approval has expired. It is typically valid for 3–6 months depending on the bank. After that a new one is required, with a new credit check.

	Pre-approval	Final loan
Binding	No	Yes
Based on	Your finances	Your finances + the specific property
Bank valuation	None	Required
Can change	Bank can decline	Fixed after signing

Never sign a purchase contract without final approval for the specific property.

Three things worth knowing

Get a pre-approval from 2–3 banks. They can give significantly different amounts depending on their stress interest rates (kalkylrantor) and standardised estimates, and the difference can be hundreds of thousands of kronor with exactly the same finances. Keep in mind, however, that each bank normally runs a separate credit check via UC (Sweden’s main credit bureau), and each enquiry is registered and visible for 12 months. A couple of enquiries have little practical impact if you have a normal credit history, but if you want to minimise the number you can use a mortgage broker who compares several banks with a single UC enquiry.

A pre-approval is a maximum amount, not a recommendation. Your affordability assessment margin (KALP — kvar att leva pa) determines what is wise, not what is maximally possible.

On 1 April 2026, new mortgage rules came into effect. The mortgage ceiling (bolantak) was raised from 85% to 90% and the tightened amortisation requirement (the extra 1% on debt exceeding 4.5 times annual income) was abolished. If you have an existing pre-approval based on the old ceiling you should contact your bank to ask whether it can be updated to the new terms. Conditions vary between banks.

Run an affordability calculation similar to the bank’s before applying for a pre-approval. In BoKalk you can see whether you are likely to be approved and at approximately what level, without triggering a credit check.

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Christoffer, founder BoKalk