Working paper: Loan types, leverage, and savings behaviour of Danish households

Authors Kuchler, Andreas
Subject Danish Economy; Housing finance; household balance sheets
Type Working paper
Year 2015
Published 3 September 2015
The paper analyses how savings behaviour and leverage of Danish households vary across interest and amortisation profiles on mortgage loans. The analysis shows that households choosing interest only-mortgages have lower savings rates, take larger loans and have higher loan to value-ratios than households which amortise their mortgage debt.