Deposit loans: how to manage the ten percent

You won the bidding. Nice. But now comes the contract, with it the deposit demand. Usually ten percent of the price. Buying for five million, that means five hundred thousand kronor on the table the moment you sign.

And here a problem often arises. The money exists, but sits stuck. Perhaps in your current home not yet sold. Or in savings taking weeks to free. The mortgage pays out no earlier than moving day, possibly months away.

So you hold money on paper, but not in hand the day you need it. A deposit loan (handpenningslån) exists to cover precisely that gap.

What is a deposit loan?

A deposit loan is a short credit. It covers the deposit until your ordinary financing lands. Either when you sold your old home, or when the mortgage pays out at moving day.

So it is no mortgage. It is a temporary loan with short term, usually just a couple of months. The idea is bridging the time between contract and moving day, nothing more.

When moving day comes, the whole purchase price settles and the mortgage pays out. Then the deposit loan resolves in full. So you hold it only as long as the gap lasts, rarely longer.

When do you need one?

The most common situation is buying before selling. You hold a home to finance the next, but it is unsold, so capital is locked. Then the deposit is unavailable the day the contract is written.

Another situation is money in savings taking time to release. Funds and shares sell, but days pass before money reaches the account. And the contract does not wait.

With money already free in an ordinary account you of course need no deposit loan. Then you pay the deposit directly. The loan serves those whose capital is tied up right now.

What does it cost?

Deposit-loan rates run higher than mortgages. It is short, insecure credit for the bank, and the price shows it. Count also on a possible setup fee.

But one thing weighs the other way: the term is short. Holding the loan only a month or two, total kronor cost stays fairly small even if the rate looks high. A high rate briefly does not become much money.

Exactly where it lands depends on amount, rate and how long you hold the loan. Always have the bank work out the actual kronor cost, not just name a percentage. It is the kronor you actually pay.

Requirements and conditions

The bank wants the rest of the purchase secured. Meaning a granted mortgage, or money inbound from an already sold home. They want to know the deposit loan only fills a gap, not that the whole deal stands loose.

Many banks also want you as their customer, or taking your mortgage there, to grant a deposit loan. So the question often connects to your ordinary mortgage. Discuss both together with your bank.

Alternatives to check first

Before taking a deposit loan, check for a simpler way. With savings in funds you can sell in good time holding cash ready. Then you skip the loan entirely.

With relatives able to lend or stand as guarantor, it can turn both cheaper and smoother. A short-term private loan can sometimes be the cheaper alternative. Ask the bank about that too.

You can also negotiate with the seller. Sometimes a lower deposit works out, or a later moving day so you sell and free money in time. Not always possible. But asking costs nothing, especially if the seller cares more about a safe deal than fast money.

Prepare it before you bid

House-hunting through SökHem with a registered buying brief, raise the deposit loan with your bank before bidding. Not after. It is a simple call to make calmly, and hard to fit in panic.

With us the purchase starts with you saying what you seek, then the system finds sellers for you, even ones never advertised openly. That means the right home can appear fast and unexpectedly. Then you want financing ready, deposit included. A buyer already knowing how payment resolves is simply a calmer, stronger buyer.