Danske Bank offers its lowest interest rate for new bank home loans to young home buyers. In addition, Realkredit Danmark lowers the margin on new fixed-rate mortgage loans.

Danske Bank and Realkredit Danmark strengthen their combined product offering for home finance customers with strong focus on first-time buyers

Danske Bank and Realkredit Danmark strengthen their combined product offering for home finance customers with strong focus on first-time buyers
Danske Bank’s Danske BoligStart concept targeted at first-time buyers now includes even more benefits. In the future, home buyers aged 18 to 38 will be offered the lowest interest rate available in the interest rate spread for home loans when they take out a new loan. The interest rate is variable and is currently 3.59% p.a. for supplementary home loans* – that is, the portion of the financing that comes on top of a mortgage loan.

*Total disbursed loan amount: DKK 500,000. Term: 30 years. Variable nominal interest rate: 3.59%. Monthly payment: DKK 2,355. Total borrowing costs: DKK 258,906. Total repayment: DKK 758,906. APR without compulsory fire insurance: 3.9%. The loan is secured on the home.

Furthermore, Danske Bank’s mortgage credit institution, Realkredit Danmark, lowers the administration margin on new fixed-rate mortgage loans with and without repayment of principal, irrespective of the borrower’s age. This means, for instance, that the administration margin on a mortgage loan with a loan-to-value (LTV) ratio of 80% with repayment of principal will fall from 0.68% to 0.57%. The annual pre-tax benefit is thus about DKK 2,500 for the financing of an average single-family house in Denmark priced at DKK 2.8 million. The higher the price of the home, the greater the benefit. For an average owner-occupied flat of 80 square metres located in Copenhagen and priced at around DKK 5.6 million, the benefit will be just over DKK 4,900 for an LTV ratio of 80%.

The new margins make Realkredit Danmark the cheapest provider in the market of fixed-rate loans without repayment of principal, regardless of the LTV ratio.

Total disbursed loan amount: DKK 2,000,596. Term: 30 years. Borrowing rate: 4.06%. Monthly payment (administration margin of 0.57%): DKK 10,913. Borrowing costs (administration margin of 0.57%): DKK 1,795,871. Total repayment before tax (administration margin of 0.57%): DKK 3,796,467. APR (no mandatory fire insurance/administration margin of 0.57%): 5.05%. The loan is secured on the home. Calculation at 22 January 2026.

The two initiatives offer more peace of mind and make it cheaper and financially predictable for first-time buyers when they enter the housing market.

The changes should be seen in the light of Danske Bank’s Forward ‘28 strategy, which aims, among other things, at making Danske Bank even more relevant for customers looking to buy a home for the first time. To this end, Danske Bank has introduced the Danske BoligStart concept, which focuses particularly on helping first-time buyers navigate the home-buying process confidently.

“Young people should be allowed to buy a home with peace of mind, and with Danske BoligStart, they have access to a personal adviser who will guide them through the process and to special benefits such as the possibility of a no-obligation online meeting with a buyer adviser from home, our real estate agency chain, who can provide good advice on how to negotiate the price when buying an owner-occupied home, for example. In addition, our interest rates become even more attractive when we offer customers aged 18 to 38 the lowest interest rate in the interest rate spread for bank home loans when the loan is raised and lower margins on new fixed-rate mortgage loans. We offer a real helping hand that makes entering the housing market cheaper and more predictable,” says Mark Wraa-Hansen, Head of Personal Banking, Denmark.

Fixed-rate loans are relevant for many first-time buyers
For many first-time buyers, buying a home is one of the biggest financial decisions in life – often associated with uncertainty. Price trends, inflation and higher interest rates have made the dream of owning a home more difficult to realise for many young home buyers. This is especially true around Copenhagen where the so-called housing burden – that is what it costs to buy and own a home in relation to your income – is at a very high level in a historical context.

“Even though the housing burden has not increased everywhere, many young people, no matter where they live, face a financial challenge and uncertainty when they enter the housing market for the first time. And the cost of home financing naturally matters. The lower cost of fixed-rate mortgages applies to all types of new loans regardless of the borrower’s age. But especially among young home buyers, we see that fixed-rate loans provide reassurance and more peace at mind,” says Kamilla Hammerich Skytte, CEO of Realkredit Danmark.

Just over six out of 10 loans disbursed in the past few years have been fixed-rate loans for borrowers under the age of 30, whereas the percentage for borrowers aged 30 to 39 has been almost 55%.

The cost reductions are yet another example of Danske Bank and Realkredit Danmark’s efforts to become even more competitive by using strengths and opportunities to offer advisory services and loans across mortgage and bank home finance.

For example, we have eliminated the additional administration margin on new interest-only mortgages where the LTV ratio is below 60%, and this offers our customers more flexibility in terms of savings and financial planning. In Danske Mobile Banking, it is now possible to monitor your fixed-rate loan and the remortgaging potential, and with one tap, you can digitally change the profile of your Realkredit Danmark FlexLån® loan. We have also introduced a preliminary home purchase certificate in the home search and finance tool, which makes it easy for potential buyers to get a preliminary answer to how much money they can spend on buying a home on the basis of their current financial position. Finally, with the new Hurtigt Boligsvar initiative, both customers and potential customers can very quickly get an indication of whether they can make a bid for the home of their dreams once they have submitted the required information and held a meeting with an adviser.

Facts:

• Young home buyers aged 18 to 38 can now obtain a bank home loan at the lowest interest rate in the interest rate spread for bank home loans when the loan is raised.
• The administration margin on new Realkredit Danmark fixed-rate mortgage loans with repayment of principal is lowered from 0.68% to 0.57% if the LTV ratio is 80%*. This will result in an annual pre-tax benefit of about DKK 2,500 for an average single-family house in Denmark. For an average owner-occupied flat of 80 square metres, you can save just over DKK 4,900. The new and lower cost of fixed-interest mortgage loans applies to all new loans – regardless of whether you are a new or an existing customer. Existing customers may benefit from the lower cost if they remortgage or take out a fixed-rate supplementary loan at a lower cost.

*Total disbursed loan amount: DKK 2,000,596 Term: 30 years. Borrowing rate: 4.06%. Monthly payment (administration margin of 0.57%): DKK 10,913 Borrowing costs (administration margin of 0.57%): DKK 1,795,871 Total repayment before tax (administration margin of 0.57%): DKK 3,796,467 APR (no mandatory fire insurance/administration margin of 0.57%): 5.05%. The loan is secured on the home. Calculation at 22 January 2026