Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
The Danes' housing debt grew in 2024
Danish private customers increased their total housing debt to banks and mortgage banks by kr. 12.2 billion in 2024. As a result, private customers' housing debt has now surpassed the level from mid-2022, when debt and house prices last peaked. Homeowners were able to take advantage of falling interest rates in 2024, and the interest rate (including contributions om mortgage loans) on new housing loans fell by 1.2 percentage points during the year. The interest rate trend has also influenced Danes' choice of new mortgages, with the F3 loan experiencing increasing popularity.
Private customers' housing debt reached kr. 1,935 billion at the end of 2024
Note:
The chart shows the nominal value of Danish private customers' (employees, pensioners, etc.) total housing loans from banks and mortgage bank. For bank loans, it is limited to loans for housing purposes, and for mortgage loans, it is limited to loans for owner-occupied homes and holiday homes.
Housing debt increased by kr. 12.2 billion in 2024
Despite a reduction in the first quarter, Danes gradually increased their housing debt towards the end of the year. Of the total increase in housing debt of kr. 12.2 billion, kr. 4.1 billion is bank debt, while the remaining kr. 8.1 billion is mortgage bank debt.
In addition to the increase from new loans, private customers have also made fewer repayments on their mortgage loans in recent years. This is mainly due to the relatively higher interest rates on homeowners' loans compared to a few years ago, which has meant that a larger share of the payment installments has gone to interest payments rather than repayments.
Largest increase in Danes' housing debt since the beginning of 2022
Note:
The chart shows the quarterly change in Danish private customers' (employees, pensioners, etc.) housing debt (nominal value) divided into bank and mortgage bank debt. For bank loans, it is limited to loans for housing purposes, and for mortgage loans, it is limited to loans for owner-occupied homes and holiday homes. In November 2023, part of the lending was transferred from banks to mortgage banks, which affects the development in the 4th quarter.
Lower interest rate on new housing loans in 2024
In 2024, many homeowners were able to take advantage of falling interest rates on new housing loans. The interest rate on new loans disbursed to private customers thus fell by 1.2 percentage points during the year to an average of just under 4 pct. including contributions in December. Particularly loan types with medium-term interest rate fixation, i.e., F1, F3, and F5 loans, as well as bank loans, which typically have a short interest rate fixation, experienced interest rate declines during the year. The interest rate on fixed-rate loans fell at the beginning of the year and then remained relatively stable.
Despite a lower interest rate on new housing loans, the average interest rate including contributions on private customers' total housing debt increased by 0.1 percentage points in 2024. The increase has mainly been driven by interest rate adjustments on loans with an interest rate fixation of 3 years or longer.
The average interest rate on new housing loans fell to 4 pct. in December
Note:
F3 loan is the most popular among new variable-rate mortgage loans
In 2024, private customers received 129,000 new mortgage loans (including loan conversions) with a total value of kr. 249 billion. Fixed-rate loans were, as in previous years, the most common type of loan and accounted for about half of the value of all loans disbursed. Among the variable-rate loans, interest in the F3 loan increased during 2024, and F3 loans accounted for approximately 43 pct. of all new variable-rate loans in the fourth quarter. This was particularly at the expense of loans with very short interest rate fixation of 3 or 6 months, which only accounted for 13 pct. of disbursed variable-rate loans in the fourth quarter.
F3 loans accounted for 43 pct. of the value of new variable-rate mortgage loans in the fourth quarter
Note:
The chart shows the distribution of the value of new variable-rate mortgage loans disbursed to Danish private customers (employees, pensioners, etc.) in each quarter, divided by types of interest rate fixation. The category 'Other' covers loan types with interest rate fixations that are not shown directly, i.e. F2, F4, F6, F7, F8, F9, and F10 loans. The category 'Short' covers loan types with interest rate fixation of 3 or 6 months, where the interest rate is linked to the CIBOR or CITA rate.