Today’s news / Fixed-rate mortgages regain popularity
Home buyers are increasingly falling in love again with fixed-rate loans. (Archive photo). Photo: Mathias Løvgreen/Ritzau Scanpix

Fixed-rate mortgages regain popularity

Fixed-rate mortgages are witnessing a resurgence among homebuyers, with figures from the Danish financial sector organization Finance Denmark revealing that three out of five mortgages issued in the second quarter had a fixed interest rate. This shift is attributed to the desire for certainty and stability, as fixed-rate loans have known interest costs for their duration, unlike variable-rate loans. Peter Jayaswal, Director of Mortgage and Property Financing at Finance Denmark, notes that loan choices depend on individual risk tolerance and financial situations. The popularity of fixed-rate loans peaked at the end of 2019 when 80% of homebuyers chose them, coinciding with lower interest rates. Current effective rates are approximately 4.3% for a 30-year fixed-rate mortgage, while variable-rate loans like F-kort or Flexkort are around 3.97%.