The short answer is no. But preparing your finances for a home purchase doesn't have to take long – especially not with a financial plan. That time can also be put to good use researching the market and getting your finances in order, so you're ready for a quick home purchase.
For any home purchase, the buyer must finance a minimum of 5% of the purchase price themselves. This is a requirement from the Danish Financial Supervisory Authority (Finanstilsynet). But it doesn't have to stand in the way of your dream home. With a financial plan, you can often save up for the down payment surprisingly quickly, without you or your family having to live on nothing.
Some banks even require a 10% down payment. In that case, you should always get quotes from other banks. Bomae is approved by the Danish FSA for financial advice and helps you get the very best terms, both in negotiations with the bank and with the real estate agent.
When Bomae helps with financial plans, we start from your (or your household's) day-to-day needs, what you value most, and what you can best do without, depending on how quickly things need to move. Bomae has extensive experience helping buyers reach their down payment goal – most have been ready to buy after just 6 to 12 months.
Where can you save? The car: If the car sits idle most of the week, there's real money to be saved by giving up car ownership until you've bought your home. If, on the other hand, it's essential for commuting to and from work and driving the kids to activities, it isn't the right place to cut back. A typical Danish car is worth DKK 63,000 on average, plus annual running costs – so this is where you can free up a significant chunk of your down payment. Travel: Yes, it's a hard pill to swallow, but two weeks at a family member's holiday home in Denmark instead of a big trip abroad can be a shortcut to your down payment. Restaurants: Imagine how that chilled glass of white wine will taste on the terrace or balcony of your new home. If you can put restaurant visits on hold, there's DKK 12,000 to save for an average family in the Capital Region. Pension savings: It sounds drastic to touch your pension savings, but for many Danes, the home is the largest pension savings of all – and tax-free. Entertainment services: If you can turn off the TV and make do with a couple of streaming services over the summer half of the year, there's around DKK 4,000 to be saved. Activities: If you can swap the gym for runs and push-ups for a period, there's good money to be saved. If two adults pause their gym memberships for 12 months, there's often DKK 7,200 to be had.
Of course, it isn't simply a question of where you can save the most.
We weigh the importance of your needs against the possible savings. If you have home dreams but are short on the down payment, book a no-obligation chat with us here and hear more.
Fill in the contact form so we can have a chat about how we can help you buy and finance your home.
