Danish Government Proposes Easier Mortgages for First-Time Buyers
The Danish government plans to simplify mortgage access for first-time homebuyers amid rising housing costs. Culture Minister Jakob Engel-Schmidt highlighted the challenges faced by many young people entering the housing market.
“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,” said Engel-Schmidt.
He emphasized the importance of homeownership as both financially beneficial and appealing, stating the government’s goal to increase the number of Danes owning their homes.
Details of the Mortgage Proposal
- The government suggests extending mortgage repayment periods from 30 to 40 years.
- Mortgages would cover up to 80 percent of the property value, unchanged from current terms.
- The remaining amount must be financed by a bank loan (banklån or boliglån) and a minimum 5% downpayment (egenbetaling) by the buyer.
- The longer repayment period aims to reduce monthly mortgage payments by approximately 560 kroner per borrowed million (about 6,700 kroner annually).
“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,” said the minister.
This initiative seeks to improve affordability for younger buyers and ease their entry onto the housing market.
Summary: Denmark aims to support first-time homebuyers by extending mortgage terms to reduce monthly payments, promoting greater homeownership among younger citizens.