Down payment on a home in Denmark in 2026: how much do you need to save?

The short answer is often 5 per cent of the purchase price. The honest answer is that 5 per cent is rarely the whole amount.

You also need an overview of the costs of the purchase and to consider how much you want left in your account afterwards. Otherwise you may be standing with the keys in your hand and finances that already feel stretched.

In brief

• When buying a house or an owner-occupied flat (ejerlejlighed), 5 per cent of the purchase price is normally used as the starting point for your own down payment (udbetaling).
• The 5 per cent is not a fixed, statutory minimum percentage that applies equally to everyone. The bank must assess what an appropriate down payment is in your situation.^[1]
• A mortgage loan (realkreditlån) can typically finance up to 80 per cent of an owner-occupied home's value. The rest is often covered by a bank loan and your own down payment.
• The down payment is only one part of the cash you need. Land registration (tinglysning), loan costs, professional help, insurance, moving and a buffer can come on top.
• The more you put in yourself, the less you need to borrow. But a larger down payment has to be weighed against the need for money for life in the home afterwards.

Want to start with your own figure? Try the Down Payment Calculator and get a quick overview.

What is a down payment on a home?

The down payment is the part of the home's purchase price that you bring yourself. If you buy a home for 3.000.000 kr. and use 5 per cent as the starting point, the down payment is 150.000 kr.

The calculation looks like this:

Purchase price × 5 per cent = down payment

It is important to distinguish between the down payment and your savings. Your savings are all the money you have available. The down payment is the part you spend on the purchase price itself.

If you have 220.000 kr. saved and need 150.000 kr. for the down payment, you have 70.000 kr. left for costs and a buffer. That overall calculation is the one you need to know. Not just the 150.000 kr.

Is 5 per cent a legal requirement?

People often say you need 5 per cent as a down payment. The reality is a little more nuanced.

The rules say that the bank must, as a starting point, ensure that you contribute an appropriate down payment. The Danish FSA (Finanstilsynet) describes 5 per cent as a normal starting point, but the bank must still assess your finances individually.^[2]

This means two things:

1. Savings of 5 per cent do not automatically lead to approval.
2. The bank may ask for a larger down payment if your finances or the home make the purchase more vulnerable.

The bank looks at, among other things, your income, other debt, your disposable income (rådighedsbeløb), your savings, your spending and the home's value. That is why two people with the same salary and the same savings can get different answers.

How the financing often fits together

For a year-round home (helårsbolig), the financing is often explained with the 80/15/5 model. Holiday homes are financed differently.

For a home costing 3.000.000 kr., a simple example could look like this:

This is a model, not a promise of financing. The mortgage credit institution (realkreditinstitut) bases its lending on its own valuation of the home. If the home is valued lower than the price you have agreed with the seller, a gap can arise that has to be covered by a larger bank loan or more money from you.

See also how the bank works out your purchase budget.

What does the bank loan for top-up financing cost?

The bank loan typically covers the part between the mortgage loan of 80 per cent and your down payment of 5 per cent. It is normally more expensive than the mortgage loan, and the bank sets the interest rate individually based on your finances.

Read more about the bank's loan types in the guide Mortgage loans and bank loans, and see the fees side by side in Compare home loans.

How much do you need for the down payment?

Here is 5 per cent of different purchase prices:

The table shows only the down payment. It does not show how much you need to have saved in total for buying a home.

5 per cent is not all the cash you need

This is where many people are surprised. They have reached their down payment target but still lack money for everything around the purchase.

Among other things, you may face costs for:

• Land registration of the deed (skøde)
• Land registration of loans and mortgages
• The bank's and the mortgage credit institution's set-up costs
• Price spread (kursskæring), brokerage fees (kurtage) or a fixed-price agreement (fastkursaftale)
• A lawyer or other professional help for the buyer
• A building inspection
• Change-of-ownership insurance (ejerskifteforsikring) when buying a house
• Moving and possibly paying for two homes at once
• Paint, curtains, lamps and the first repairs

You can see the items together in the guide What does it cost to buy a house?

Some costs can be included in the financing. Others have to be paid with your own money. It depends on your finances, the home and the specific financing.

Land registration of the deed

When ownership of the home is registered, a land registration fee (tinglysningsafgift) is paid. In an ordinary sale of real property, the fee is calculated as a fixed amount of 1.850 kr. plus 0,6 per cent of the transfer price.^[3]

With a purchase price of 3.000.000 kr., the calculation is:

• 0,6 per cent of 3.000.000 kr. = 18.000 kr.
• Fixed fee = 1.850 kr.
• Land registration of the deed = 19.850 kr.

Land registration of loans and mortgages

A fee is also paid when the lender registers a mortgage on the home. From 1 January 2026, the variable fee is 1,25 per cent of the secured amount. The fixed fee is 1.825 kr.^[4]

The actual cost depends on the size of the loans, the number of documents and whether land registration fee already paid on a previously registered charge can be reused. That is why it is better to have the amount calculated for the specific home than to put one fixed standard amount into your budget.

Example: a 3.000.000 kr. home

Let us take a simplified example. You buy an owner-occupied home for 3.000.000 kr. and use 5 per cent as the starting point for the down payment.

Even before loan costs, insurance and moving, you are above 169.000 kr. That is why savings of exactly 150.000 kr. can be too little, even though they equal 5 per cent of the purchase price.

Your savings target is the sum of:

Down payment + actual purchase costs + the buffer you want to keep

Should you put down more than 5 per cent?

A larger down payment means a smaller borrowing need. It can reduce the bank loan, lower your total borrowing costs and give more room in your monthly finances.

But not all of your savings need to end up in bricks and mortar.

If a larger down payment empties your account, the first bill for a leaking pipe, a broken washing machine or a move can become hard to handle. So it is not just about putting in as much as possible. It is about seeing the down payment and your buffer as two parts of the same decision.

Ask the bank to show several scenarios with different down payments. Then you can compare your borrowing need, monthly expenses and the amount you have left after the purchase.

What does the bank look at besides the down payment?

Your savings matter, but they do not stand alone. If you want to understand that part better, you can read the guide on net worth when buying a home.

The bank carries out an overall creditworthiness assessment (kreditværdighedsvurdering) and typically looks at:

• Income and job situation
• Fixed expenses
• Student debt, car loans and other debt
• Disposable income after the home purchase
• Total debt relative to income
• Savings history and spending
• Choice of loan and how sensitive your finances are
• The home's value, type and condition

Read more about disposable income when buying a home, debt-to-income ratio and the four pillars of your home finances.

A home purchase should not just work on paper. There also needs to be room for everyday life afterwards. Food, transport, children, holidays and whatever else life throws at you do not disappear because you have bought a home.

Can your family help with the down payment?

Help from family can be a gift or a family loan. The two options affect your finances differently.

A gift does not have to be paid back. A family loan is debt, even if it is interest-free or has no repayments. The bank needs to know about the loan and may include it in its assessment of how much debt your finances can carry.

In 2026, a parent can as a rule give their child up to 80.600 kr. without gift tax. The amount applies per giver, per recipient and per calendar year. Above the limit, gift tax is as a general rule 15 per cent of the excess amount.^[5]

The rules depend on the relationship between giver and recipient. So get the documentation and the current tax rules in order before the money is transferred.

When do you pay the down payment?

The down payment in the financing and the amount stated in the purchase agreement (købsaftale) are easily confused.

The purchase agreement may state that shortly after signing you must deposit an amount with the estate agent (ejendomsmægler). This is not necessarily exactly the same amount as the 5 per cent the bank uses in its financing model.

The deadline, amount and payment method are set out in the purchase agreement. The rest of the purchase price is typically handled via a bank guarantee and a later deposit. Make sure the financing and any conditions are in place before you move money under the agreement.

How to find your savings target

You do not need to start with every fee and rate. Start with the big figures and make the calculation more precise once you have a specific home in your sights.

1. Find the price range you are realistically looking in.
2. Calculate 5 per cent of the purchase price as your first benchmark.
3. Add land registration, loan costs and professional help on top.
4. Set money aside for moving and the first expenses in the home.
5. Decide how big a buffer you want left over.
6. Get the bank to confirm the total cash you need for the specific home.

Once the figures are together, you can use the checklist for preparing for your bank meeting.

You can put together your first calculation in the Down Payment Calculator. It gives you a place to start before all the small figures move into your head at once.

Common mistakes when saving for a home

You stop at 5 per cent

Then you can easily be short of money for land registration, loans, insurance, moving and a buffer.

You use all your savings on the down payment

This can mean less debt, but also a stretched start if the home needs money straight away.

You assume all costs can be borrowed

That depends on the bank's assessment and your finances. Make sure every item is included in the specific financing overview.

You forget the difference between purchase price and valuation

The mortgage loan is based on the home's lending value. A lower valuation can increase the amount you have to find yourself.

You take on new debt along the way

A car loan, a consumer loan or a larger purchase on instalments can change the bank's assessment, even after an initial meeting.

You forget life after the handover

Paint, curtains and moving boxes are not the most expensive items on their own. Together they can eat up a large part of the buffer you thought was for unforeseen expenses.

In summary

Start with the 5 per cent, but save for more than the down payment.

5 per cent is a good first benchmark. The overall target is the down payment, the purchase costs and the money you want left over afterwards.

Once you know all three figures, the dream of a home becomes less hazy. You know what you are saving for, what can change the calculation and which questions to take to the bank.

Frequently asked questions