F3 and F5 borrowers face higher mortgage costs

Homeowners with variable rate mortgages in Denmark are affected by rising interest rates. Totalkredit concluded auctions setting new rates effective from July 1st. For F5 loans, rates will increase from -0.02% to 2.5%, requiring homeowners to budget up to an additional 1,600 DKK per month per million borrowed. F3 loans will see an increase from 1.50% to 2.25%, while F1 loans will decrease to 2.26% from 3.82%. Despite potential for higher rates last year, the increase still impacts household finances, notes Brian Friis Helmer from Arbejdernes Landsbank. Analyst Sune Malthe-Thagaard advises adjusting tax pre-assessments to reflect these higher rates, benefiting homeowners’ net pay in 2025. The new rates will first impact payments at the end of September.