Danish Financial Supervisory Authority reports prioritetslån growth to DKK 130bn and warns of implications for consumers and the mortgage system

The Danish Financial Supervisory Authority has published an analysis showing strong recent growth in prioritetslån, a bank-issued home loan product secured on owner-occupied housing, and flagged potential implications for both consumer outcomes and the Danish financial system. The supervisor said it is monitoring the development closely and will focus its supervision on ensuring that prioritetslån are provided in line with consumer rules and other relevant requirements. Outstanding prioritetslån increased from around DKK 50bn in 2020 to DKK 130bn in 2025 and now account for just under 8% of total prioritets- and mortgage lending, marking the largest shift away from mortgage credit in several years. The product typically offers greater flexibility, individually negotiated interest terms and lower establishment costs, and in some cases functions like an overdraft where interest is paid only on the drawn amount, but contracts may allow the bank to terminate the loan even if the customer is not in default. Finanstilsynet noted that a sustained move by the most creditworthy customers from mortgage credit to prioritetslån could weaken the mortgage credit system over time. The analysis is based on reporting to Finanstilsynet and its own calculations. Banks are reminded of their duty to guide customers on home loans so they can assess whether the product fits their needs and financial situation, while the supervisor continues to track the market closely.