The National Bank of Denmark reported that Danish homeowners have increased their housing debt by DKK 36.5 billion since the beginning of 2025, more than the combined increase over the previous three years, as household borrowing has picked up alongside declining interest rates. Mortgage loans accounted for DKK 25.5 billion of the rise, but bank housing loans have also gained traction. Bank debt for housing purposes has increased by 4 percent since the end of 2024, compared with a 1.5 percent increase in mortgage debt. The average annual interest rate, including fees, on new housing loans has fallen by nearly 2 percentage points from its peak at the end of 2023, and the lower rate has lifted the market value of Danes’ mortgage debt by DKK 67.5 billion more than the nominal increase in the underlying debt.
National Bank of Denmark 2025-08-27
National Bank of Denmark flags DKK 36.5 billion jump in household housing debt in 2025 as bank loans outpace mortgage growth
The National Bank of Denmark reported a significant increase in Danish homeowners' housing debt by DKK 36.5 billion since early 2025, surpassing the combined rise over the previous three years. Mortgage loans contributed DKK 25.5 billion to this increase, with bank housing loans growing by 4 percent since the end of 2024. The average annual interest rate on new housing loans has decreased by nearly 2 percentage points since late 2023, boosting the market value of mortgage debt by DKK 67.5 billion.