The Danish mortgage system
The main principles of the Danish mortgage system
- All loans are granted against mortgages on real property.
- The balance principle is a basic element of the Danish mortgage regulation. According to this principle, all lending is funded through the issuance of bonds, and loan payments and the payments to bondholders must always match. This match between funding and borrowing eliminates all financial risk from the credit institution's balance sheet, rendering the mortgage bank a very sound institution.
- Bond loan prices are exclusively market driven. The borrower pays the market price of the issued bond as well as a transparent administration margin.
Nykredit's housing loans are secured by mortgage on real property
- Low interest rate and competitive costs
- Housing loans with a floating rate
- Loan term of up to 30 years
- Optional interest-only period
- Financial advisory services in English or Danish
- Loan documents in English or Danish