Housing

Danish mortgages, two loans, explained

Updated July 2026Reviewed July 2026
The short versionDanish mortgages are unusual: you get two loans, a realkredit loan (up to 80% of the price at bond-market rates) plus a bank loan for the rest. Foreigners are often asked for 15-20% down, not the legal 5% minimum, and you sign everything digitally with MitID.

The two-loan system

The thing that confuses everyone: in Denmark you do not get one mortgage. A typical purchase combines a realkredit loan (from a mortgage institute like Nykredit, Totalkredit or Realkredit Danmark) covering up to 80% of the price at low bond-market rates, plus a bank loan for the gap above your deposit at a higher rate. The realkredit rate is set by the bond market, not negotiated with a manager.

What foreigners need

You will need a CPR number, MitID, a NemKonto and a stable Danish income. While the legal minimum deposit is 5%, banks routinely ask foreigners for 15-20% down, especially if you have not lived here long. Borrowing is stress-tested at 4% over 30 years, and total debt generally cannot exceed 4.0x your gross income.

How the process works

You sign the purchase agreement and loan documents digitally with MitID, not at a branch. The bank facilitates both loans. Mortgage interest is tax-deductible and reported automatically to SKAT, appearing on your årsopgørelse. When comparing products, compare ÅOP (the effective all-in cost), not just the headline coupon.

Before you commit

Make sure you are not on RKI, and understand the buying process in buying property in Denmark. Model affordability with the affordability calculator and check the cost of living.

Not financial adviceMortgage terms depend on your bank, income and the property. This is general information, not financial advice, get a proper offer from a Danish bank or mortgage institute.

Lenders will also expect you to have home and contents insurance in place.

Common questions

Can foreigners get a mortgage in Denmark?

Yes, with a CPR number, MitID, a NemKonto and stable Danish income, though banks often ask foreigners for 15-20% down.

How does the Danish mortgage system work?

You typically take two loans: a realkredit loan up to 80% of the price at bond rates, plus a bank loan for the remainder.

How much deposit do I need?

Legally 5%, but banks commonly require 15-20% from foreigners, especially recent arrivals.