If you are new to the country, then navigating the Danish mortgage system and finding the best mortgage loan in Denmark can seem overwhelming. Denmark has a unique and highly structured mortgage model that’s different from many other countries. If you’re a foreigner looking to buy property to live in or for investment purposes, it’s important to understand how the system works, what your options are, and what requirements you need to meet in order to get a mortgage loan in Denmark.
In Denmark, mortgage loans are primarily issued by specialized mortgage credit institutions and are regulated separately from consumer loans. These loans typically cover up to 80% of the property’s value (75% for holiday homes known as sommerhuse), with the remaining amount financed through a bank loan or your own savings. Fixed and variable interest options are available, with terms ranging from short-term flexible rates to long-term fixed rates of up to 30 years.
In this guide, I’ll walk you through everything you need to know about securing the right mortgage loan in Denmark. From how the Danish mortgage system works to my top recommendations for reliable providers, I’ll give you practical insights on the application process, required documentation, and what to expect in terms of interest rates and overall costs. Whether you’re an EU citizen, a non-EU resident, or a newly arrived foreigner with a work permit, this guide is designed to help you navigate the Danish mortgage landscape with clarity and confidence.
If you are looking for a more detailed guide on how to choose the right bank in Denmark or how to find the best bank providing loans for foreigners, you may want to check out my two other guides, where I cover these topics in detail:
Can Foreigners Get a Mortgage in Denmark?
Yes, foreigner can get a mortgage loan in Denmark, but there are some conditions. While EU/EEA citizens have fewer barriers, non-EU/EEA citizens often face additional scrutiny and need to meet certain residency or employment criteria. Some of the key factors that banks and mortgage lenders typically assess are the following ones:
- Residency status: Permanent residence or long-term work contracts in Denmark make it easier to qualify for a mortgage loan in Denmark.
- Income and employment: A stable income and employment history in Denmark are major advantages.
- Credit history: Danish banks will check your credit record (and possibly foreign credit records, too) to assess your financial reliability.
- Property type: Mortgages are most commonly approved for primary residences; buying summer houses or investment properties usually come with stricter terms.
If you have decided to purchase a property, it’s a good idea to get pre-approval from a lender before you begin your search. This will give you a clear understanding of your budget and strengthen your position when negotiating with sellers.
Types of Mortgage Loans in Denmark
Denmark has a unique and well-regarded mortgage system that offers borrowers several flexible options. As a foreigner looking to buy property, it’s important to understand the different types of mortgage loans available, so you can choose the one that fits your financial situation and long-term plans.
Fixed-Rate Mortgage (Fastforrentet lån)
- With a fixed-rate mortgage, your interest rate remains the same for the entire loan term—typically 10, 20, or 30 years. This means your monthly payments stay predictable, offering stability and protection against interest rate increases. This option is best for borrowers who value long-term financial predictability or plan to stay in the home for many years.
Variable-Rate Mortgage (Rentetilpasningslån)
- Also known as an adjustable-rate mortgage, this loan type has an interest rate that adjusts at regular intervals, often every 1, 3, or 5 years. These loans usually start with a lower interest rate compared to fixed-rate loans, but the payments can rise or fall depending on market rates. The variable-rate mortgage is best for buyers who expect to sell or refinance within a few years and want to benefit from lower initial rates.
Interest-Only Mortgage (Afdragsfrit lån)
- With this option, you only pay the interest for a set period (up to 10 years), after which you begin paying off the principal. This reduces your monthly payments during the interest-only phase and gives you more financial flexibility upfront. This option is ideal for borrowers who need lower payments in the early years, such as new arrivals settling into life in Denmark, but who have a solid plan for the future.
Adjustable Mortgage with a Cap (F-kort or RenteMax)
- Some mortgage types combine a variable rate with a built-in cap and thereby limits how high the interest rate can rise. This offers a compromise between the lower costs of variable rates and the predictability of fixed rates. This one is best for borrowers who are comfortable with some level of interest fluctuation but want protection against extreme increases.
Documents You Will Need To Apply For a Mortgage Loan in Denmark
When applying for a mortgage in Denmark as a foreigner, you’ll need to present a comprehensive set of documents. Danish banks and mortgage lenders are regulated under strict national and EU-level financial laws, and documentation helps assess your creditworthiness and legal status.
Most lenders will typically require the following:
| Document | Purpose |
|---|---|
| Valid passport or national ID | This confirms your identity. |
| Residence permit or proof of residency | Confirms your legal status in Denmark, which is especially important for non-EU citizens. |
| CPR number (Danish personal ID) | Needed for identification and financial registration in Denmark. |
| Employment contract or proof of income | Demonstrates your financial stability and ability to repay the loan. |
| Payslips (usually last 3 months) | Verifies your current income. |
| Tax returns or annual income statements | Offers a longer-term view of your financial situation (especially for those who are self-employed). |
| Bank statements (typically last 3 months) | Shows your cash flow, savings, and existing liabilities. |
| Proof of down payment funds | Confirms that you can cover the required upfront costs (usually at least 5%). |
| Details of the property | Includes the purchase agreement or valuation report, especially if already selected. |
Where to Find the Best Mortgage Loan in Denmark as a Foreigner
Once you’re ready to explore your mortgage options in Denmark, it’s important to compare offers from different lenders to ensure you get the best terms available, this is especially important as a foreigner, where requirements and rates can vary depending on your residence status, income, and credit history.
As a good starting point, I would suggest you to use an independent bank loan comparison tool or bank loan comparison service. Both platforms allow you to see offers from multiple banks and mortgage providers in one place. By filling in a few basic details, you’ll receive tailored suggestions that match your profile, which saves you both time and money in the long run. Both are ideal options and can help you choose the option that best fits your needs and budget.
FAQ About Best Mortgage Loan in Denmark for Foreigners
Can Foreigners Get a Mortgage Loan in Denmark?
Yes, foreigners can apply for mortgage loans in Denmark. EU/EEA citizens generally find it easier, especially if they have a permanent address and stable income in Denmark. Non-EU citizens may face stricter conditions, but it is still possible, particularly with a residence and work permit.
What Types of Mortgage Loans are Available to Foreigners in Denmark?
The main types of mortgage loans in Denmark include interest-only mortgages, fixed-rate mortgages, and variable-rate mortgages.
How Much Can I Borrow as a Foreigner?
Typically, you can borrow up to 80% of a property’s value through a mortgage loan. The remaining 20% must come from your own savings or through a bank loan. Your income, employment status, and creditworthiness will also affect the loan amount.
Do I Need Permanent Residency to Qualify For a Mortgage?
Permanent residency is not always required, but having long-term residence and a stable job in Denmark improves your chances significantly. Some banks may require at least a few years of financial history in Denmark.
What Documents do I Need to Apply for a Mortgage?
You will typically need: Passport or national ID, CPR number, employment contract or income documentation, tax records (e.g., SKAT annual statement), proof of savings or assets, and residency permit (for non-EU citizens).
How Long Does it Take to Get a Mortgage in Denmark?
From initial application to approval, it usually takes 2–4 weeks, depending on the lender, your documentation, and the complexity of your case.
Can I Get a Mortgage Without a Danish Credit History?
It is possible, but more challenging. Some banks may accept international credit history or focus on your income and employment status in Denmark. You may also be asked for a larger down payment.
