- how they work
A credit guarantee is an insurance policy that lenders can take out for loans on new and renovated housing, and when purchasing real estate to be converted into cooperative, tenant-owner housing. The credit guarantee provides the lender with protection
against credit losses and reduces the need for final loans or private capital investment for those who build housing.
The credit guarantee takes effect if the borrower does not fulfil commitments to the lender and the property must be sold as a result. When the guarantee takes effect, Boverket takes over the lender's claims on the borrower.