Key information about Denmark Bank Lending Rate

• Denmark Bank Lending Rate was reported at 2.500 % pa in Feb 2025.
• This stayed constant from the previous number of 2.500 % pa for Jan 2025.
• Denmark Bank Lending Rate data is updated monthly, averaging 2.250 % pa from Apr 1992 to Feb 2025, with 395 observations.
• The data reached an all-time high of 15.000 % pa in Nov 1992 and a record low of 0.050 % pa in Aug 2022.
• Denmark Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Monthly.

Mortgage interest rates in Europe soared in 2022 and remained elevated in the following two years. In many countries, this resulted in interest rates more than doubling. In the UK, the average mortgage interest rate rose from **** percent in 2020 to **** percent in 2023, before falling to **** in 2024. Why did mortgage interest rates increase? Mortgage rates have risen as a result of the European Central Bank (ECB) interest rate increase. The ECB increased its interest rates to tackle inflation. As inflation calms, the ECB is expected to cut rates, which allows mortgage lenders to reduce mortgage interest rates. What is the impact of interest rates on home buying? Lower interest rates make taking out a housing loan more affordable, and thus, encourage homebuying. That can be seen in many countries across Europe: In France, the number of residential properties sold rose in the years leading up to 2021, and fell as interest rates increased. The number of houses sold in the UK followed a similar trend.

The total amount of outstanding residential mortgage lending in Denmark slowly increased between the third quarter of 2016 and the second quarter of 2024 with slight fluctuation between quarters. The value reached over 254 billion euros by the second quarter of 2024. Denmark has a well-developed mortgage market. Nevertheless, it ranked below Belgium and Italy in terms of the total mortgage lending outstanding. The mortgage interest rate in Denmark steadily declined between 2016 and 2021, but soared in 2022. That has affected the value of new mortgages.

Denmark Mortgage Credit Inst Lending Rate: Avg: New: EUR: Households: Up to 1 Yr data was reported at 1.393 % pa in Sep 2017. This records an increase from the previous number of 1.150 % pa for Jun 2017. Denmark Mortgage Credit Inst Lending Rate: Avg: New: EUR: Households: Up to 1 Yr data is updated monthly, averaging 1.286 % pa from Oct 2013 (Median) to Sep 2017, with 32 observations. The data reached an all-time high of 1.625 % pa in Feb 2014 and a record low of 1.018 % pa in Sep 2016. Denmark Mortgage Credit Inst Lending Rate: Avg: New: EUR: Households: Up to 1 Yr data remains active status in CEIC and is reported by Danmarks Nationalbank. The data is categorized under Global Database’s Denmark – Table DK.M006: Lending Rate: Mortgage Credit Institutes.

The benchmark interest rate in Denmark was last recorded at 1.60 percent. This dataset provides the latest reported value for - Denmark Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Denmark - Housing cost overburden rate: Owner, with mortgage or loan was 5.50% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Denmark - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on April of 2025. Historically, Denmark - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 23.00% in December of 2009 and a record low of 3.40% in December of 2023.

Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households: Total Borrowing Cost data was reported at 2.022 % pa in Sep 2018. This records a decrease from the previous number of 2.213 % pa for Aug 2018. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households: Total Borrowing Cost data is updated monthly, averaging 2.260 % pa from Oct 2013 (Median) to Sep 2018, with 60 observations. The data reached an all-time high of 3.024 % pa in Aug 2014 and a record low of 1.608 % pa in Dec 2017. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households: Total Borrowing Cost data remains active status in CEIC and is reported by Danmarks Nationalbank. The data is categorized under Global Database’s Denmark – Table DK.M006: Lending Rate: Mortgage Credit Institutes.

The total amount of gross residential mortgage lending in Denmark fluctuated significantly between 2016 and 2024. The highest amount of gross residential mortgage lending during this period was identified in the third quarter of 2019, when a value of nearly 27 billion euros of residential mortgage lending was recorded. In the second quarter of 2024, gross mortgage lending totaled 7.4 billion euros. During the same period, the total outstanding residential mortgage lending in Denmark declined, reaching over 254 billion euros.

Denmark - Overcrowding rate: Owner, with mortgage or loan was 4.40% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Denmark - Overcrowding rate: Owner, with mortgage or loan - last updated from the EUROSTAT on April of 2025. Historically, Denmark - Overcrowding rate: Owner, with mortgage or loan reached a record high of 4.90% in December of 2019 and a record low of 3.20% in December of 2023.

Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households data was reported at 1.947 % pa in Sep 2018. This records a decrease from the previous number of 2.139 % pa for Aug 2018. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households data is updated monthly, averaging 3.505 % pa from Jan 2003 (Median) to Sep 2018, with 189 observations. The data reached an all-time high of 6.994 % pa in Jul 2008 and a record low of 1.551 % pa in Dec 2017. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Households data remains active status in CEIC and is reported by Danmarks Nationalbank. The data is categorized under Global Database’s Denmark – Table DK.M006: Lending Rate: Mortgage Credit Institutes.

The average interest rate on bank loans to households in Denmark was 5.4 percent in the last quarter of 2024, higher than the rate for business loans and mortgages. Interest rates grew quickly starting in late 2022. However, they started declining again in 2024.

Denmark: Interest rates on bank credit to the private sector: The latest value from is percent, unavailable from percent in . In comparison, the world average is 0.00 percent, based on data from countries. Historically, the average for Denmark from to is percent. The minimum value, percent, was reached in while the maximum of percent was recorded in .

Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations data was reported at 1.220 % pa in Sep 2018. This records a decrease from the previous number of 1.285 % pa for Aug 2018. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations data is updated monthly, averaging 2.926 % pa from Jan 2003 (Median) to Sep 2018, with 189 observations. The data reached an all-time high of 6.275 % pa in Oct 2008 and a record low of 1.168 % pa in Nov 2017. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations data remains active status in CEIC and is reported by Danmarks Nationalbank. The data is categorized under Global Database’s Denmark – Table DK.M006: Lending Rate: Mortgage Credit Institutes.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, ranging from rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 3.7% over the five years through 2024, including an estimated slump of 2.1% in 2024 to €196.2 billion, while the average industry profit margin is forecast to reach 34.6%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing in the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated, being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. Revenue is forecast to swell at a compound annual rate of 4% over the five years through 2029 to €238.7 billion. Following a correction during 2024, housing prices are set to being recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, Proptech, which has been heavily invested in, will force estate agents to adapt, shaking up the traditional real estate industry. A notable application of Proptech is the use of AI and data analytics to predict a home’s future value.

The house price to income ratio increased slightly in 2023, after plummeting the previous two years. In the third quarter of 2023, the house price to income ratio amounted to 102.7 index points, down from its peak of 122.3 index points in the first quarter of 2021. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Has buying a house in Denmark become more affordable? The decline in the house price to income index is mostly because of a correction in house prices, as shown by the EMF house price index for Denmark. Meanwhile, incomes in the country have continued to grow. However, that does not mean housing is more affordable, as the average mortgage interest rate has soared, making credit much more expensive for homebuyers. What is the average house price in Denmark? In 2023, the average sales price of a single-family house in Denmark was about 2.6 million Danish Kroner. Single-family houses are the most popular dwelling type in the country, followed by multifamily housing units.

Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations: Over 10 Yrs data was reported at 2.655 % pa in Sep 2018. This records an increase from the previous number of 2.639 % pa for Aug 2018. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations: Over 10 Yrs data is updated monthly, averaging 2.767 % pa from Oct 2013 (Median) to Sep 2018, with 60 observations. The data reached an all-time high of 3.839 % pa in Feb 2014 and a record low of 2.467 % pa in Jun 2017. Denmark Mortgage Credit Inst Lending Rate: Avg: New: DKK: Non Financial Corporations: Over 10 Yrs data remains active status in CEIC and is reported by Danmarks Nationalbank. The data is categorized under Global Database’s Denmark – Table DK.M006: Lending Rate: Mortgage Credit Institutes.