As of the first quarter of this year, Danish homeowners continued to demonstrate strong financial resilience, with mortgage arrears remaining close to historic lows, new research from Finans Danmark has revealed.
The group reported an arrears rate of 0.11%, meaning homeowners failed to pay an average of just 11 øre for every DKK 100 due in mortgage instalments within three-and-a-half months of the payment date.
The arrears rate has remained below 0.15% since the beginning of 2021, which Finans Danmark described as a ‘very low and stable level’ among the country’s homeowners.
Healthy finances
As the group noted, the low level of missed payments is supported by healthy household finances, high employment levels and responsible lending practices by Danish banks and mortgage institutions.
“Homeowners continue to show great stability when it comes to paying their loans on time,” commented Peter Jayaswal, deputy director for real estate and property financing at Finans Danmark.
“The fact that the arrears percentage remains at such a low level reflects a strong private economy among Danish homeowners. It also shows that the credit ratings of banks and mortgage institutions ensure that homebuyers have both financial leeway and robustness.”
Financial difficulties
Jayaswal added that homeowners experiencing financial difficulties should seek to contact their lender as early as possible.
“If a homeowner nevertheless experiences financial challenges and has difficulty paying their mortgage as agreed, it is important to contact their advisor in time,” he said. “The advisor can often help create an overview, find solutions and get personal finances back on track.”
The figures cover mortgage repayments on detached and terraced houses, owner-occupied apartments and holiday homes. Finans Danmark is an interest and employer organisation for banks and mortgage institutions, asset managers, stockbrokers, investment funds, as well as data centers, IT and fintech companies. Read more here.
