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Best regards
Zmags
The traditional
Danish mortgage model
Realkreditrådet
Zieglers Gaard
Nybrogade 12
DK-1203 KØbenhavn K
Telefon: +45 33 12 48 11
Fax +45 33 32 90 17
rkr@rkr.dk
www.rkr.dk
Contents
1 | The traditional Danish mortgage model........................................................................................................................Page 6
2| Mortgage loans finance real property purchases................................................................................................Page 11
3| Legislation breaks away from traditional mortgage model.......................................................................Page 15
4| Danish mortgage bonds – a very safe investment.............................................................................................Page 20
5 | Efficient Danish mortgage system despite financial crisis....................................
The traditional Danish mortgage model R
Contents 1 | The traditional Danish mortgage
Foreword Denmark has the best mortgage system in
UNIQUEMORTGAGESYSTEM The Danish mortgage system i
Inpractice,therequirementmeansthatmortgagebanksha
1|The traditional Danish mortgage model A m
07 • Mortgage banks have only one source of fun
The mortgage system Loan
This principle ensures that borrowers benefit fro
Match between loan and underlying bonds Withmatc
2|Mortgage loans finance property purchases
• Borrowers may prepay their loans on attractive
repayments payable throughout the term of the loa
A floating-rate loan may be prepaid in three ways
3|Legislationbreaksawayfrom traditionalmor
• Mortgage banks and commercial banks must ensur
17 Differences and similarities between covered
LTVLIMITTOBEOBSERVED ONACONTINUOUSBASIS The requi
19 Supplementary security if property prices dec
4|Danish mortgage bonds – a very safe invest
The high level of security and the ensuing high r
5|EfficientDanishmortgage systemdespitefin
THEEUROPEANMARKETCAMETOAHALT In the beginning, Eu
THEDANISHMARKETPULLEDTHROUGH The Danish mortgage
25 Mortgagelendingand recenteconomiccrises In
6|Danish mortgage lending and financial stab
MORTGAGELENDINGCONTINUESDURINGCRISES Danish mortg
7|200 years of Danish mortgage lending Danis
1849 In the 1830s, the debate about more organise
1989 In 1989, a new reform of the Danish mortgage
31
Print:Jannerupoffseta/s•12/2009 Realkreditrådet