Danish Government Proposes Easier Mortgages for First-Time Buyers
The Danish government has announced plans to make it easier for first-time home buyers to qualify for mortgages, aiming to help more citizens enter the property market.
Government's Position
Culture Minister Jakob Engel-Schmidt told Ritzau that, due to the high cost of property, those purchasing their first home deserve special consideration.
“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.
Proposed Changes
- Extending the standard mortgage repayment period from 30 to 40 years.
- Maintaining the current loan ratio at 80 percent of the property's value.
- Requiring a minimum down payment of 5 percent of the purchase price.
According to government estimates, the extended repayment term would reduce monthly mortgage costs by about 560 kroner per borrowed million, easing the financial pressure on first-time buyers.
Author’s Summary
The proposed reform aims to curb Denmark’s falling rate of first-time homeowners by extending mortgage terms and lowering monthly payments, making housing more accessible for younger buyers.