Danish Government Seeks Easier Mortgages for First-Time Buyers
The Danish government has announced plans to make it easier for first-time buyers to obtain mortgages, aiming to boost home ownership among young people facing high housing prices.
Government’s Proposal
Culture Minister Jakob Engel-Schmidt told the Ritzau news agency that many aspiring homeowners are struggling to enter the market, with the number of first-time buyers dropping by nearly 25 percent in recent years.
“In recent years, we’ve seen that a great many first-time buyers have been unable to get onto the housing ladder. The number of first-time buyers has fallen by almost 25 percent, and many young people are left pressing their noses against the window, unable to get in,” he said.
“We need to do something about that, because we know that owning your own home is generally both financially sound and attractive. The government and I want more Danes to own their homes,” he continued.
Key Changes Under the Plan
- Extend the maximum mortgage repayment period from 30 to 40 years.
- Permit mortgages covering up to 80 percent of a property’s value.
- Maintain the minimum downpayment requirement of 5 percent.
Home purchases are usually financed through a combination of mortgage loans, bank loans (banklån or boliglån), and buyers’ cash contributions (egenbetaling).
Expected Impact
According to government estimates, the extended repayment period would reduce monthly mortgage payments by around 560 kroner per million borrowed, helping first-time buyers manage costs more easily.
Summary
The initiative aims to make home ownership more attainable for younger Danes by offering longer mortgage terms and slightly lower monthly repayments.