Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.

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

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.