Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. The series is targeted at people who want quick insight into current financial data.

# Smaller difference between fixed and variable rates

In April 2023, the average interest rate difference was 1.63 percentage points on new loans with fixed and variable interest rates. The figure applies to the homeowners' new loans paid out in April and is calculated before contributions. This difference was 3.40 percentage points six months ago.

**The interest rates on the homeowners' new mortgage loans have increased***Note: Weighted average effective interest p.a. for mortgage loans paid out in the given month to Danish homeowners. Variable interest includes all loans whose interest rate is adjusted during the term of the loan.*

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Since then, the gap has narrowed. This is largely due to the interest rate on new loans with a variable interest rate increasing by 1.45 percentage points to 3.42 per cent, and at the same time the interest rate on new loans with a fixed interest rate has remained roughly unchanged at around 5 per cent.

### It has become more expensive to borrow

Since the beginning of 2022, the interest rate on new loans with fixed interest and variable interest has increased on average by 3.31 and 3.46 percentage points respectively. For a new homeowner, this means that the annual interest expenses (before tax) have increased by approx. DKK 33,100 per million borrowed when taking out a new fixed-rate loan, compared to if the loan had been taken out at the start of 2022. The corresponding additional cost for a new variable-rate loan is approx. DKK 34,600 per borrowed million.

### Gradual impact on the total mortgage debt

Although interest rates on new loans have risen considerably over the past few years, this has so far only had a limited impact on the average interest rate on Danish homeowners' total mortgage debt.

The average interest rate on Danes' total fixed-rate mortgage debt was most recently calculated at 2.27 per cent. – just 0.94 percentage points higher than at the beginning of 2022. This limited increase compared to the interest rate on new loans, is largely a result of the majority (approx. 67 per cent) of the homeowners' fixed-rate mortgage debt, which has had its interest rate set before 2022.

For the variable interest debt, the impact of rising interest rates has been larger due to the shorter interest fixation on the loans. The average interest rate for Danes' total mortgage debt with a variable interest rate was thus most recently calculated at 1.38 per cent. – as much as 1.40 percentage points higher than at the beginning of 2022.