Loans, down payment and buying costs in Denmark
How financing splits between down payment, mortgage-credit loan and bank loan, what banks assess, and what registration costs.
Applies to: Denmark. Reviewed 2026-09-25.
Key takeaways
- You normally pay at least 5 per cent of the price yourself.
- A mortgage-credit loan finances up to 80 per cent of the value, a bank loan covers the rest.
- Mortgage deeds cost DKK 1,825 plus 1.25 per cent of the loan to register from 2026.
How financing is built
| Part | Share of price | Note |
|---|---|---|
| Down payment | At least 5% | Your own money, not borrowed. |
| Mortgage-credit loan | Up to 80% | Funded by bonds, lowest rate. |
| Bank loan | The rest, up to 15% | Higher rate, often shorter term. |
Under the good-practice rules for home lending, the buyer should normally pay an appropriate part of the price themselves, in practice at least 5 per cent. Banks also assess debt relative to income and wealth, and are more restrictive with variable rates and interest-only loans when debt is high.
The mortgage-credit loan
- Fixed rate for up to 30 years, which can be redeemed at par or bought back at the market price.
- Variable rate (adjustable or short-rate loans) that resets regularly.
- Interest-only periods of up to ten years on some loans, if the loan-to-value allows.
- Margin fee: an annual charge to the lender on top of the interest.
The ability to buy back a fixed-rate loan below par when rates rise is special to Denmark and can reduce debt when refinancing. Ask the bank to model it before choosing a loan type.
Buying costs to budget for
| Cost | 2026 level |
|---|---|
| Registering the deed | DKK 1,850 + 0.6% of the price |
| Registering mortgage deeds | DKK 1,825 + 1.25% of the loan |
- Buyer's adviser or lawyer.
- Half the change-of-ownership insurance premium, if you take it.
- Loan costs: set-up fee, price spread and brokerage.
- Moving, insurance and first maintenance.
Questions to ask
- Fixed or variable rate on the mortgage-credit loan, and with or without repayment?
- What will my total monthly cost be if rates rise?
- What margin fees and price differences apply?
Red flags
- The budget only works with an interest-only period and a variable rate.
- You have not budgeted for registration fees, adviser and moving.
Sources
- Executive order on good practice in home lending (Retsinformation (Erhvervsministeriet))
- Registration fee: new rate from 1 January 2026 (Skattestyrelsen)
- Rates under the Registration Fees Act (Skatteministeriet)