Roine Vestman on SVT: Sweden should phase out the mortgage interest deduction
Roine Vestman, Professor of Economics at Stockholm University, recently appeared on SVT, where he commented on a potential phase-out of the mortgage interest deduction. ”It’s a significant part of the state budget,” he said, noting that the government spent SEK 61 billion on interest deductions in 2024.
Roine Vestman is a professor of economics at Stockholm University. Photo: Johanna Säll
Vestman argues that the deduction contributes to household debt and rising housing prices. Sweden could follow Finland’s model and gradually reduce the deduction, for example over a period of twenty years.
The interest deduction has long been questioned by economists and international institutions, but political decisions have been lacking. Vestman believes that a gradual change is possible even now – especially since the Swedish economy is relatively strong.
”If there’s an economic crisis, it’s unwise to burden households, but right now we’re in more of a normal situation,” says Roine Vestman.
