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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.

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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.

Example

You and your partner invest DKK 110,000 and DKK 50,000 respectively into a home.
Later, you sell for DKK 200,000.

Without a co-ownership agreement, profits split equally — even if one paid more upfront.
With an agreement, you each get back your contributions first, then split the rest.

Tip: Protect yourself with proper legal agreements — we can help!

Home Loan

Which Mortgage Fits You?

Ask yourself:

  • Do you want peace of mind and budget stability? → Fixed rate.

  • Can you handle rate fluctuations and want to save now? → Variable rate.

 Not sure? We help you compare offers, negotiate with banks, and find the best deal — based on your unique situation.

Buyer's Agent

Please fill out the contact form, so we can talk about how we can help you with the purchase and financing of your home.

    Or call 70 40 03 36, Monday to Sunday 9:00-20:00

    FAQ about mortgage in Denmark

    If you couldn't find an answer, you're of course more than welcome to call us or write to us at:
    Phone: +45 72 600 400
    Monday to Friday, 9:00 AM - 8:00 PM
    [email protected]
    Monday to Friday, 9:00 AM - 8:00 PM

    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.

    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.

    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.

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

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