Stricter lending requirements have made homeowners more robust

Analysis - January 2020 - No. 1

Authors Bentzen, Christian Sinding; Cokayne, Graeme Stuart; Gerba, Eddie Edin; Roulund, Rasmus Pank
Subject Housing finance; Macroprudential policy; Financial regulation; Financial stability; The Systemic Risk Council
Type Analysis
Year 2020
Published 21 January 2020
Danish authorities have implemented a number of regulations targeting mortgage financing. The new regulations provide incentives for the most indebted homeowners to increase amortization on their mortgages thereby increasing the robustness of the housing market. As the new rules have been implemented, mortgage credit institutions have managed to increase their issuance of new mortgages to first time buyers as well as older existing home owners remortgaging.