Danish Government Seeks Easier Mortgages for First-Time Buyers
Denmark’s government has announced plans to make mortgages more accessible for people buying their first home. The initiative aims to ease barriers for younger buyers struggling with high housing costs.
Statements from Officials
“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 Culture Minister Jakob Engel-Schmidt.
“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 added.
Key Policy Proposals
- Extend mortgage repayment periods from 30 to 40 years.
- Maintain the loan-to-value ratio at 80 percent of the property price.
- Require a minimum buyer down payment of 5 percent.
Expected Financial Impact
According to government estimates, the longer repayment term would reduce monthly mortgage costs by about 560 kroner per borrowed million, helping new buyers manage their budgets more comfortably.
Author’s Summary
The Danish government proposes extending mortgage terms to 40 years to lower monthly costs and help first-time home buyers enter the housing market.