The National Bank of Denmark published analysis showing that ordinary instalments paid by Danish homeowners per DKK 1 million of mortgage debt have declined in every one of Denmark’s 98 municipalities since 2020, while disparities between municipalities have increased. The widening gap is attributed mainly to differences in the use of interest-only mortgage loans. Gentofte and Lolland illustrate the divergence, with the difference in ordinary instalments per DKK 1 million rising from DKK 26,704 in 2020 to DKK 32,511 in 2024. Homeowners in Gentofte paid average instalments of DKK 8,055 in 2024 compared with DKK 40,566 in Lolland, and municipalities that already had the lowest instalments saw the largest declines since 2020. Variation in the share of interest-only mortgages also increased, ranging in 2024 from 77.4% in Gentofte to 16.8% in Tønder, with interest-only lending most prevalent and rising most in and around larger cities and in North Zealand, while southern and western municipalities reduced their share of interest-only mortgage debt.
National Bank of Denmark 2025-03-27
National Bank of Denmark finds Danish mortgage instalments falling nationwide while municipal gaps widen due to interest-only loans
The National Bank of Denmark's analysis shows a decline in ordinary instalments per DKK 1 million of mortgage debt across all 98 municipalities since 2020, with disparities due to varying use of interest-only loans. The gap is exemplified by Gentofte and Lolland, where instalments rose from DKK 26,704 in 2020 to DKK 32,511 in 2024. Interest-only mortgage prevalence varies significantly, with Gentofte at 77.4% and Tønder at 16.8% in 2024, highlighting regional differences.