Analysis of the Danish Mortgage Market

Original title: Analyse af det danske realkreditsystem

The Danish mortgage market is a unique system for mortgage financing due to several different loan types, unit pricing, price transparency, and several options for refinancing and conversion of loans. Danish mortgage lenders have relatively low interest on their mortgages and have good options to change loans at a low cost when interest rates change. The well-functioning Danish mortgage market also has stabilising and positive macroeconomic impacts on the Danish economy.

Mortgages are broadly accessed in all of Denmark, including in times of financial crises. However, the impact of interest rate changes on housing prices differs from cities to rural areas.

In this study, we analyse the Danish mortgage market’s (“realkredit”) characteristics and importance in Denmark.

The study was commissioned by Forenet Kredit.