When you buy a home, you must, as a minimum, be able to put down 5% of the home's price as a cash down payment. This requirement was introduced at the end of 2015 and applies when buying both a house and a flat. The down payment is proof to the bank that you have financial responsibility and headroom.
The down payment does not cover the other purchase costs — it is solely your own financing of the home's price itself.
How much do I need to put down? Rule of thumb: You need to put down at least 5% of the home's price as a cash down payment.
- Home price: 3,000,000 kr.
- Minimum down payment (5%): 150,000 kr.
- External costs (e.g. solicitor, land registration, insurance): approx. 50,000 kr.
- Total amount you need to cover yourself: 200,000 kr.
NOTE: It is not permitted to take out a loan to cover the down payment. The money must come from savings or, for example, a gift. Your bank may, however, accept an overdraft facility (kassekredit) if it was set up before the home purchase and not specifically for that purpose.
Quickly calculate what you'll need for the down payment and costs
Result
Minimum down payment: kr.
+ Extra costs: kr.
Total amount: kr.
Estimated purchasing power: kr.
Simplified estimate – contact a bank for an exact figure.
What are the advantages of a bigger down payment? Even though 5% is the minimum requirement, it's often an advantage to put down more. This means:
- Less debt and lower monthly payments
- Greater financial security
- A better credit assessment from the bank
The bank looks favourably on you having been able to save up yourself. It strengthens your negotiating position and increases your chances of a better loan offer.
Exceptions to the 5% requirement In certain cases, the bank can grant a dispensation from the 5% requirement. This applies especially if:
- You have a fixed income that's markedly higher than before (e.g. a recent graduate)
- Your disposable income is well above the bank's minimum
- You can pay down the loans quickly and reach 95% loan-to-value within 2-3 years
Important: Banks interpret these rules differently. It can therefore pay off to get offers from several banks.
What other costs do you need to pay yourself? In addition to the down payment, as a home buyer you need to cover a number of external costs yourself:
- Change-of-ownership insurance (ejerskifteforsikring) (typically only when buying a house)
- Registration of the deed (tinglysning af skøde)
- A solicitor or legal advisor
- Moving costs and fees to the owners' association (for a flat)
Budget for 40,000–60,000 kr. in external costs — and more if you also need to pay set-up fees on your loans.
Interactive calculator: How much can you afford to spend on a home? Want to know how much you can afford to spend on a home based on your finances? Try our home purchase calculator and get an answer in a few minutes.
You simply need to enter:
- Your total income before tax, and your partner's if applicable
- Your total debt
- Your current savings
Start the home purchase calculator here
Things to consider before you sign What matters most to you – location, size, surroundings? Should there be room to extend? Is the area developing – or at risk of losing value? Bring a tradesperson along – how much will it cost to renovate?
Are you buying a flat? When buying a flat, the maths looks a little different:
- You don't need change-of-ownership insurance
- On the other hand, you'll often need to pay fees to the owners' association
- You still need to be able to put down 5% of the purchase price in cash
At Bomae, we negotiate with the bank on your behalf and help you to:
Free, no-obligation meeting – get an overview of your home finances today
