Denmark - Mortgage
Foreign investors have full access to local financing tools and mortgages.
When buying a house the down payment required is generally no more than 20% of the value (you can borrow up to 80%) of the buying price and the repayment periods are typically from 10 to 30 years.
Banks and credit unions offer mortgages, but most long-term finance in Denmark is provided through mortgage institutions. Among several, the two major ones are Realkredit Danmark ( ) and Nykredit ( ).
Unlike the American system, Danish institutions have no implicit government guarantee, and no line of credit with the Treasury. The lending activities are financed through issuing of bonds, which are sold on the open market. You can get fixed mortgages or mortgages variable with the bond market prices.
When the bond price goes down the interest rate goes up.
It is a fully private system that has never seen a systemic crisis or even a default on a bond series in its more than 200-year existence.
A fundamental feature of the Danish system is that assures that the market itself acts against continued setbacks in the bond market when interest rates go up. This assures stability, and is an important element in Danish housing financing.
For more information on buying property in Denmark you can visit the Danish Governments website: