BRF debt ratio: how to read a cooperative's loans per sqm

The debt ratio (skuldkvot) of a Swedish housing cooperative (BRF) measures how much the cooperative has borrowed relative to its size, usually expressed as the cooperative's loans per square metre. The higher the debt ratio, the more of the monthly fee may have to go to interest and repayments, and the more sensitive the cooperative is to rising interest rates. You find the figures in the cooperative's annual report, and you can do the maths yourself in a few minutes.

This guide is for you if you are thinking about buying a cooperative flat (bostadsrätt) in Mora instead of renting, or just want to understand the numbers in a listing.

What does debt ratio mean for a BRF?

A housing cooperative owns the building. When you buy a bostadsrätt you buy a share in the cooperative and the right to use the flat, but the cooperative owns the property. According to Wikipedia on housing cooperatives, cooperatives are usually financed by members' contributions and long-term loans from mortgage institutions.

The cooperative's loans are not your personal loans, but members pay for them through the monthly fee. The same source notes that interest often makes up a large part of a cooperative's costs. That is why the debt ratio matters for what it costs to live in the flat, today and in a few years.

The term skuldkvot is used in different ways. In estate agent listings and bank assessments of cooperatives it usually means loans per square metre. Sometimes it is instead calculated as the cooperative's debt divided by its annual fees. Always check how the figure was calculated before comparing two cooperatives.

Where do you find the figures?

Under the Swedish Annual Accounts Act (chapter 6, section 3 a), a housing cooperative must report key figures in its directors' report that make its finances easier to understand. The law lists, among others:

• annual fee per square metre held as bostadsrätt
• debt per square metre
• savings per square metre
• interest rate sensitivity
• energy cost per square metre

If the cooperative makes a loss, it must also explain what the loss means for its ability to meet future commitments.

You can usually get the annual report from the estate agent or directly from the cooperative. According to Wikipedia, since 1 January 2026 cooperatives' annual reports must be filed with the Swedish Companies Registration Office (Bolagsverket), which makes them easier to obtain.

How to calculate the debt ratio yourself

You need two figures from the annual report:

1. The cooperative's interest-bearing loans. Found in the balance sheet and in the note on liabilities to credit institutions. Include both long-term and short-term loans.
2. Total floor area. Often stated in the directors' report. Distinguish between area held as bostadsrätt and total area including rental flats and commercial premises.

Divide the loans by the area. An example: a cooperative with SEK 20,000,000 in loans and 2,500 square metres of bostadsrätt area has a debt ratio of SEK 8,000 per square metre. The figures are made up and only show the calculation.

For your own flat, multiply by the flat's size. A 60-square-metre flat in the example indirectly carries SEK 480,000 of the cooperative's loans.

Interest rate sensitivity: what if rates rise?

With the debt ratio you can work out what a rate rise costs. If the cooperative's loans are SEK 8,000 per square metre, a rise of one percentage point means SEK 80 more per square metre per year. For a 60-square-metre flat that is SEK 4,800 a year, or SEK 400 a month, if the cooperative passes the whole increase on to the fee.

Also check when the cooperative's loans are due for renewal. The note on liabilities often shows rates and maturity dates. Loans due for renewal soon feel a new rate level earlier than loans with long fixed terms.

The debt ratio is not the whole picture

A low debt ratio is not automatically good. Also look at:

• Savings per square metre. Is the cooperative setting money aside for maintenance, or does everything go to running costs and interest?
• Maintenance plan. A major pipe replacement or new roof that has not yet been done can mean new loans later.
• Rental flats and commercial premises in the building. Rental income can cover part of the costs.
• Annual fee per square metre. High debt combined with a low fee can mean the fee will need to rise.

The cooperative's loans stay with the building. According to Wikipedia, the cooperative's long-term loans are not affected by individual members selling their flats. So when you buy, you indirectly take over your share of the debt.

Rent or buy in Mora?

As a tenant you do not carry the landlord's loans in the same way. Your rent is set through negotiation or agreement and is tested against the rules in chapter 12 of the Land Code (jordabalken). In a bostadsrätt, the cooperative's finances feed directly into your monthly cost. If you are comparing a rental flat in Mora with a bostadsrätt, work out the mortgage, the monthly fee and the cooperative's debt ratio before deciding.

If you have questions about your rights as a tenant, the Swedish Union of Tenants (Hyresgästföreningen) can help.