Danish Government Proposes Easier Mortgages for First-Time Buyers
The Danish government aims to support first-time home buyers by making mortgages more accessible amid rising housing costs. Culture Minister Jakob Engel-Schmidt explained the need for change to the news wire Ritzau.
“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.”
Engel-Schmidt emphasized that home ownership is both financially beneficial and desirable. He added, “The government and I want more Danes to own their homes.”
Key Mortgage Changes Proposed
- Increase mortgage repayment period from 30 to 40 years
- Allow mortgages covering 80% of the property value (current rules already allow this)
- Buyers must still provide a minimum downpayment of 5%
- The remaining funding is obtained through bank loans
The longer repayment period would reduce monthly mortgage payments by about 560 kroner per month for every million kroner borrowed, easing financial pressure on first-time buyers.
“The extended repayment period would lower mortgage repayments by around 6,700 kroner per borrowed million, equivalent to roughly 560 kroner per month,” according to the government.
This initiative reflects a deliberate effort to reverse the decline in first-time home buyers and facilitate greater home ownership across Denmark.
Author's summary: The Danish government plans to ease mortgage conditions, including extending repayment to 40 years, to help revive the shrinking number of first-time home buyers facing high housing costs.