Mortgages in Denmark - Everything You Need to Know
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- เผยแพร่เมื่อ 10 ก.ค. 2024
- How Danish mortgages work, how much money you need to put in to buy a house, and more.
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Super cool video, extremely valuable information before my meeting with Nordea :)
Glad you enjoyed it!
Thank you for the video. very informative. I am about to head to my first house visiting (from the inside) so very curious. And about the tax reduction I haven't thought - which is a very good point.
Yes please! Make a video on interest-only loans in Denmark!! And how easy it is for expats to get them, how soon after they move to the country, etc. Thank you!
I made a video about it already: th-cam.com/video/1xp0jigTNos/w-d-xo.html
Just read your 40-page guide, and I have to comment on one particular entry: the Bidragssats is not a bullshit fee, it's one of the historical foundations for our mortgage system. Back before the financial liberalization of the 90s, Realkreditforeninger (mortage institutes) were independent (sometimes costumer owned) associations. They weren't backed by greedy banks or rich individuals. In order to provide mortgages as cheap as possible, they needed to guarantee investors (the people buying the bonds) against loss when home owners defaulted. They did so by having a financial buffer that allowed them to reimburse the investors (and take ownership of the property, which the would later sell at a loss) whenever it happened. That buffer was accumulated by the Bidragssats. Bidrag means 'contribution', and it was literally your contribution to ensure the sustainability of our mortage system, by helping the Forening sustain its buffer.
Also when your say "banks" in your guide, keep in mind that it's a rather recent (2-3 decades) development that banks took control of the Realkredit. It came about because of a demand from the EU that we should liberalize our system, in order to secure lower prices for costumers. Yeah, foreigners have never unstood (nor taken an interest in) the history of the Danish mortage system (ie. see Basel III).
Thank you for the insights. Back then was the bidragssats 1% for almost all credit institutions?
Thanks for the video Mario! It would be great to see a video about the mortgage type from Danske Bank: Danske Bolig Fri. Have you heard about it?
I had not heard about it, looks interesting, should read more about it 😀
Really helpful video! I bought your mortgage guide, and I really appreciated the explanation of kurs. However, it would have been more helpful to also have a term-by-term explanation of how to compare different mortgages, with each of the terms in danish(like ÅOP ) with an english explanation, and how to know which bank is giving you a better deal. I feel like I mostly figured this out myself by now, but I'd suggest to add that to your guides in the future because this was one of the biggest struggles in talking to the banks.
Thanks for buying Michelle! That list you mention has been on my to-dos for a long time. If you've made one yourself do share and it can be a starting point 😀
Rentemax is also a good option.
It gives variable interest with a max capping on the interest rate.
Not sure why very few people talk about it.
Hi Mario, thanks for another amazing guide. What percentage did you go for, when splitting your mortgage into fixed or variable components? Is there a proportion (say 50:50) that you would recommend?
I went for 60% F5 and 40% F30 -- Nothing scientific about it though! I just wanted low interest but to cap my downside in case things went sideways.
Hi Mario, Thanks for this super helpful video. Is it still possible to buy the deep-dive report? It seems to be no longer available on the website.
Hey! You can get it as part of Dream Home Denmark: marioscian.com/dream-home-denmark
Hey ! I just downloaded your report and hope to find some good info , i'll get back at you for some questions .
Thanks for downloading! Hope it will help!
Hi Mario! Thanks for the video. I am just shopping for mortgages now (good time, right?) and I am wondering about the accuracy of that tax credit for deduction of the paid interest. Is it that you can deduct 33% of what you paid in interest or you deduct full interest and that way basically get 33% back in form of higher net salary?
Also, is bidragssats negotiable or is that set for every bank?
Bidrag not negotiable, you can only deduct 33%
Great video and great explain!😊 You do speak a little too fast, so some of the things get over my head. But thanks for sharing your knowledge 👏😁
Pleasure glad you enjoy it !
Hey @mario what are your thoughts about Remortgaging / Refinancing? In my case, I got an interest only obligation loan at 1% last year, but a pretty high interest bank loan.
Refinancing would allow me to get ride of quite a bit of that bank loan, but I'll probably end up with a higher interest obligation loan, maybe not even with the interest only option.
Any thoughts on that? Thanks!
Unless you plan to sell in the very short term I wouldn't refinance a 1%
@@MarioScianHQ good point. Refinancing before selling would definitely help getting ride of some debt.
Thanks!
In the current climate, which mortgage option would you recommend to people buying today and needing only mortage 80%? F1/3/5… and interest only or?
It depends on many factors, but in general I would go with the fixed for 30 years
How client should apply for mortgage? Is there onlina options
You need to talk with the banks directly
So speaking about an interest-only mortgage: Would it be possible to just pay interest for the first 6 years and then finance your repayment by selling the house? Or do the banks want you to repay before selling the house?
You can always pay back the loan if you want to, you just have no obligation to do it
What is kurs exactly? which mortgage offer would be better, kurs 98,5 or 97, for example?
And what is ÅOP?
What is kurs and how it works is answered in the report I linked in the video description. It's not something I could manage to summarize into a short comment :)
How many properties you own ? Is it possible to own multiple rental properties in denmark where rental income is big enough to pay the mortgage and maintenance of property ?
I only own my primary home, I would think that rent can cover mortgage and expenses etc yes, but only in a non rent control apartment
Do you know if for example i loan money from the bank, i pay the 5% but i want to rent it out , is it possible ?
And if yes i have to pay taxes like an income for that rent ? Even dough i have the bank mortgage?
Hey! Yes, it's possible - if it's your place (ejer) you can rent it out. But it's not a good deal in most cases. I shot a video about the "buying to rent" scenario as many asked -- it's coming out Thursday! Keep an eye to it :D
@@MarioScianHQ looking forward to the video 😃
Hi Mario. Can you tell me if being a permanent resident is a must to get a loan? I’m currently living at CPH, but usually think about getting a loan, rent the apartment and move to a cheapest country. Do you think that option is possible?
You can get a loan without being a permanent resident. In all cases you need to explain "connection to Denmark" though.
Great video. I just spoke with a Danske Bank rep, who told me that for expats, they will only grant a mortgage with a 20% downpayment, and they require 40% down!!! for an interest-only loan to an expat. That's crazy. Is this the norm? Or are there other banks that allow interest-only loans to expats with smaller downpayments? Any specific bank recommendations I should check out?
That's crazy! But it's normal that banks approach foreigners like this. I made a course on how to approach the bank meeting, you could check it out: marioscian.podia.com/the-ultimate-bank-meeting-prep-negotiation-guide?coupon=BANKLAUNCH
Hi ,thank you so much for info it help me a lot,i just started working in copenhagan,i am planning to buy house here just want to know if i work 4month can i apply morggage in bank will they accept me to provide mortgage for buying house for eucitizen.
Yes, strongly encourage you to check my Bank Negotiation Guide: marioscian.podia.com/the-ultimate-bank-meeting-prep-negotiation-guide
@@MarioScianHQ thank you 🙏
Hi Mario, about 30 years fixed interest mortgage.
Assume that we borrow 2.5 million DKK and 30 years, the interest amount that bank is asking for borriwing this money is 1 million DKK.
In case we sell the apartment in 3 years, at the time we would be paying part of the interest, lets say 100.000 DKK out of 1 Million.
What about the rest of the interest ? Do we have to pay the rest of 900.000 DKK even though we sold the apartment in 3 years ?
Br and thanks for the videos.
I don't fully understand the question Cagri :( BUT -- Yes, if you've a mortgage you need to cancel it/pay it off when you sell the apartment. But if you still owe e.g. 900K you pay that off with the earnings from the sale.
What are the requirements as a self employed person to get a home loan in Denmark? (Currently in Germany will move to Denmark)
You’ll need to show that you’ve steady and regular income and make a good pitch 😀
I call bullshit on this 80 % rule.
If my brother wants to buy a house that costs 5 million DKK, and if I am willing to loan him the full amount, then he can get a mortgage that equals 100 % of the price.
Loan =! Mortgage, the mortgage system in Denmark is special
Hi Mario, in your opinion, with the rising inflation (or potentially global hyperinflation) which mortgage type (with or without grace period) would depreciate less? I am considering fixed rate 1.5% 30 yrs with installments. With the inflation in mind which mortgage is tactically best? Thank you!
Assuming infllation = higher long-term interest rates.... Then: in that case, get any fixed mortgage. You cap your downside, and then because mortgages in DK are bonds (and not loans directly from banks), you can get "kursgevinst" from rising rates i.e. as the interest rates go up, you'll be able to cancel your mortgage at a big discount.
And what fixed rate mortgage type would depreciate less: with or without installents? Or it does not matter?
It won't matter directionally
Slow down. Great content BUT I hear blabber and you're speed talking :) Your speed and accent make it difficult to understand what you're saying.
The new videos are A BIT less fast :D