Danish homeowners are converting loans for a larger amount at the price change than they have done in the past three and a half years. (Archive photo). Photo: Mathias Løvgreen Bojesen/Ritzau Scanpix
Danish mortgage conversion high
Danish homeowners are converting their mortgages more than they have in three years, with 28 billion kroner in conversions as of October 31. This surge surpasses the 8 billion seen in the previous term. Brian Friis Helmer of Arbejdernes Landsbank attributes this to shifts from 6% to current 4% loans, or from fixed to lower-rate variable loans (F3 or F5). A spike in conversions may follow if rates decline in the upcoming months. He notes that U.S. elections could influence Danish mortgage rates, especially with a potential Trump win leading to inflation-boosting tax cuts. The outcome of the tight race between Trump and Harris could thus sway the mortgage market.