Regulatory Alerts2025-11-18
Act on Mortgage Loans and Mortgage Bonds etc.
The Danish Ministry of Industry, Business and Financial Affairs, in collaboration with the Danish Financial Supervisory Authority, has issued a consolidated act regulating the issuance of mortgage bonds and the granting of mortgage loans by mortgage credit institutions. The legislation establishes strict loan-to-value limits ranging from 40% to 80% depending on property type, mandates maximum loan terms of 30 to 40 years, and defines precise security requirements and valuation standards for real estate collateral. It further details refinancing mechanisms, interest rate adjustments during maturity extensions, and specific provisions for foreign credit institutions and special security arrangements.
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