Guide · Buying for your child
Buying an apartment for your child — co-borrower, shared ownership or transfer?
When your child moves away to study, buying a small bostadsrätt (co-op apartment) is often cheaper than chasing short-term rental contracts. But as a student without a fixed income, your child will rarely qualify for a mortgage on their own. Here we walk through the three most common ways to help — as a co-borrower, through shared ownership, or by buying the apartment yourself and later transferring it — and the pitfalls in tax, bylaws and loan terms.
Three ways to help your child get onto the housing ladder
Which path suits you depends on your finances, how much control you want, and what the housing co-op's (BRF) bylaws allow. Here's how the options compare:
| Approach | Suits you when | Upside | Watch out for |
|---|---|---|---|
| Co-borrower | Your child will own and live there — but their income isn't enough for the loan | Your child owns 100% and builds their own home equity | The loan affects your own debt-to-income ratio and borrowing capacity |
| Shared ownership | You want to share risk, down payment and the loan | Flexible split of ownership and costs | Bylaws may require a minimum ownership share — often 10% — for the resident |
| Buy and transfer | You buy now, your child takes over later as a gift or purchase | No gift tax — the tax is deferred until your child sells | The co-op must approve both you and your child as members |
Co-borrower — how it works
As a co-borrower, you sign the mortgage together with your child, and the bank bases its credit assessment on your combined finances. It's the most common solution when the child is studying: CSN rarely counts as income, but with a parent's salary in the calculation, the numbers work out. Your child can still be the sole owner of the bostadsrätt — the loan and the ownership are two separate things.
The key thing to understand is that the liability is joint and several: the bank can demand the full monthly payment from either of you. The loan also shows up in your own debt-to-income ratio, which can reduce how much you can borrow yourself if you want to move or buy a holiday home. It's worth planning an exit: many families remove the co-borrower once the child has a fixed income and can carry the loan alone.
- The bank calculates based on your combined income — but also your combined debts
- The amortization requirement depends on both loan-to-value and debt-to-income, so high combined debt can mean higher amortization
- The interest deduction can be reallocated in the tax return to whoever actually pays the interest
- Most banks allow one or two co-borrowers
Shared ownership of a bostadsrätt — the parent owns a share
With shared ownership, you and your child buy the bostadsrätt together — for example 10 percent to you and 90 percent to your child. You can split the down payment, loan and costs however suits you. This approach gives you insight and a formal role — but it comes with requirements many people miss:
- Both owners must apply for and be granted membership in the housing co-op
- Many bylaws require whoever lives in the apartment to own a minimum share, often 10 percent
- Some co-ops only allow shared ownership between close relatives — and some refuse it entirely
- Draft a co-ownership agreement covering what happens on sale, renovation or if someone wants out
The rules for shared ownership are set out in the co-op's bylaws — not in the listing. Check them before bidding, or the purchase can fall through if the co-op refuses membership.
Transferring a bostadsrätt to your child — gift or sale
The third route is to buy the bostadsrätt yourself and later transfer it to your child — as a gift, a sale, or a combination of both. Sweden has no gift tax, so a pure gift triggers no tax at the time of transfer. Instead, the continuity principle applies: your child takes over your acquisition cost and only pays capital gains tax when the home is eventually sold.
If your child pays part of the value — for example by taking over your loans — the transfer can be split for tax purposes into a purchase part and a gift part. It's worth calculating the consequences or getting help from a tax advisor before signing anything. Also remember the practicalities: the co-op must approve your child as a new member, and a transfer fee of often around 2.5 percent of the price base amount may apply. While you own the home without living there yourself, the co-op's permission is also required for your child to use the apartment if they aren't a co-owner — another thing governed by the bylaws.
Down payment and mortgages as a student
Whatever the approach, at least 15 percent of the purchase price is required as a down payment — the mortgage can cover at most 85 percent. For a studio apartment at 2 million kr, that's 300,000 kr. Common ways to fund it are an advance on inheritance, a gift, or the parent borrowing against their own home as collateral. Keep in mind that a separate unsecured loan for the down payment counts towards the debt-to-income ratio and can raise the amortization requirement on the whole loan.
Also calculate the total monthly cost rather than fixating on the price: the monthly fee to the co-op, interest after the interest deduction, and amortization. An apartment with a low fee in a well-run co-op can be cheaper per month than a seemingly cheaper apartment in a heavily indebted co-op where fee increases are looming.
Don't forget the co-op — the bylaws decide what's allowed
All three approaches hinge on the housing co-op: the bylaws decide whether shared ownership is approved and with what minimum share, the board approves membership on transfers, and the annual report shows whether the fee is at risk of rising — especially important on a student budget. Bokoll reads the bylaws, annual report and inspection report for you and flags exactly these conditions and risks before you bid.
Frequently asked questions
How many co-borrowers can a mortgage have?
Most banks allow one or two co-borrowers on a mortgage, usually a parent or partner. The exact number varies between banks, so ask your bank before applying. All co-borrowers become jointly and severally liable for the whole loan — the bank can demand the full amount from any one of you.
Can I be a co-borrower without owning the apartment?
Yes, generally. Being a co-borrower and being an owner are two different things: you can be on the loan without being on the bostadsrätt title. Some banks, however, want the co-borrower to also own a share, often a smaller one such as 10 percent. Keep in mind that the loan counts towards your own debt-to-income ratio and can reduce how much you can borrow in the future.
Does my child have to own a certain share of the bostadsrätt?
Often, yes. With shared ownership, many housing co-ops' (BRF) bylaws require that whoever lives in the apartment owns a certain minimum share — commonly 10 percent — and that co-owners are close relatives. Some co-ops refuse shared ownership altogether. Read the bylaws before bidding, or you risk being refused membership after the purchase.
Does it cost anything to transfer a bostadsrätt to your child?
Sweden has no gift tax, so the gift itself is tax-free. Instead, your child takes over your acquisition cost (the continuity principle) and only pays capital gains tax the day the home is eventually sold. The co-op may charge a transfer fee, often around 2.5 percent of the price base amount. If the child pays part of the value — for example by taking over a loan — the transfer can be split for tax purposes into a purchase part and a gift part.
Can my child get a mortgage as a student?
It's difficult on their own: CSN (student aid) usually doesn't count as income in the bank's calculation, and without a fixed income the borrowing capacity is small. The most common solution is for a parent to become a co-borrower, so the bank's calculation is based on your combined finances. The alternatives are shared ownership or the parent buying and later transferring the home.
What happens to the interest deduction when two of us are on the loan?
The interest deduction follows whoever actually pays the interest. The starting point is a 30 percent deduction on interest costs up to 100,000 kr per person per year. The bank often reports the interest split 50/50 between the borrowers, but you can reallocate it in your tax return so the deduction goes to whoever paid it — important when a student without income can't use the deduction themselves.
This guide is general information, not tax or legal advice. Rules and amounts may change — always check current terms with your bank, the Swedish Tax Agency (Skatteverket) and the housing co-op.
Check the co-op before you bid
Paste a Booli or Hemnet link and Bokoll reads the bylaws, annual report and inspection report — flagging shared-ownership rules, debt per square metre and the risk of fee increases in minutes.