A mortgage is a loan you use to finance a home purchase. In Denmark, it usually covers up to 95% of the home’s value through a combination of a mortgage loan (realkreditlån) and a bank loan.

Should I choose fixed or variable interest?

Fixed interest gives you stable, predictable payments, while variable interest can be cheaper now but may change over time. The right choice depends on your risk tolerance and financial goals.

What is a co-ownership agreement?

If you’re buying with someone else (partner, friend, family), a co-ownership agreement defines how costs, ownership shares, and sale proceeds are split — avoiding conflicts later.

Can Bomae help me choose the best mortgage?

Yes! We help you compare loan offers, negotiate with banks, and find the mortgage that fits your needs — all independent and tailored to you.

How do I get started?

Book a free, no-obligation consultation with Bomae. We’ll walk you through your options and help you make informed decisions.

What Type of Mortgage Should You Choose?

What type of house mortgage should you choose?

When you’re buying a home, one of the biggest decisions is what type of mortgage to choose. Should you go for fixed or variable interest? How does it affect your finances — now and in the long term? We break it down for you here.

Fixed vs. Variable Interest

Fixed-rate mortgage

Interest stays the same for the full loan term.
Most secure option — predictable monthly payments.
Often taken at a price below 100 (e.g., you get DKK 98 for every DKK 100 borrowed).
You can refinance (down-convert) if rates fall or up-convert if rates rise to reduce debt.
Four annual termination dates (Jan 31, Apr 30, Jul 31, Oct 31) to repay at price 100.

Variable-rate mortgage (F1–F5 loans)

Interest adjusts every 1–5 years.
Always taken at price 100 — no exchange loss.
Often cheaper now but less predictable long-term.
Payback at price 100 only at rate adjustment dates; early repayment may cost extra.
Lower interest rate, but sometimes higher contribution fees.