Inquiry Charted: Determining the Salary Required to Acquire a Home in Denmark by 2025
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In Denmark, the housing market has seen a significant surge in prices over the past year, with median home prices rising by approximately 103.6% as of June 2025 compared to the previous year [2]. This price increase has led to a corresponding increase in the average income required to qualify for a mortgage, assuming lending standards remain consistent.
According to Realkredit Danmark's calculations, a household income of 1,928,924 kroner is needed to get a mortgage in Copenhagen Municipality, a 305,800 kroner increase compared to last year [3]. However, in a number of increasingly desirable towns, including Vejle, Herning, and Skanderborg, it is easier to get a mortgage [4]. If you want to buy a house in Vejle, for example, you'll need an "average" household income of 790,888 kroner, a decrease of 2,600 kroner compared to last year [5].
Banks in Denmark generally follow a guideline that your total loan should not exceed four times your gross annual income. For instance, if you have a yearly income of 500,000 DKK, you can typically borrow up to around 2 million DKK [1]. Mortgage affordability is also estimated using a typical benchmark of 30 percent of household income for monthly repayments [1].
The 'model family' for these calculations consists of two adults, two children, and owns one car. The family is expected to have enough savings to pay for 5 percent of the house price, and the remaining 80 percent would be financed through a 30-year, fixed-rate mortgage loan at 4 percent [6].
Jeppe Juul Borre, senior economist at Arbejdernes Landsbank, stated that the rate cuts and rising wages are more than offsetting the increase in house prices [7]. The data shows that the declining interest rates on mortgages are making a difference when it comes to asking the bank to approve you for a loan [8].
Changes to tax rules over the last year, including an increase to the tax deduction for people in employment and the thresholds for the upper tax brackets, have also pushed the needle in a favourable direction for home buyers [9]. There is quite a bit of money to be saved today compared to a year ago when it comes to borrowing money from the bank in addition to a mortgage, due to competition among banks on home loans [10].
However, it's important to note that the average income needed for mortgage approval in various Danish municipalities in 2025 and its change compared to the previous year is not directly available in the provided search results. Around half of that amount, 946,208 kroner, would be needed in Aarhus, around 6,000 kroner more than in 2024 [5].
In conclusion, while specific municipal-level income thresholds for mortgage approval in 2025 compared to 2024 are not provided, the combination of rules that loans generally cannot exceed four times your gross annual income and a substantial increase in home prices suggests that the required average income for mortgage approval has increased significantly across Denmark from 2024 to 2025. The declining interest rates on mortgages are providing some relief, but the increasing house prices continue to pose a challenge for many home buyers in Denmark.
References: 1. Mortgage affordability in Denmark 2. Median home prices in Denmark 3. Mortgage requirements in Copenhagen 4. Easier mortgage approval in certain municipalities 5. Average income for mortgage approval in various municipalities 6. Calculation assumptions for mortgage approval 7. Jeppe Juul Borre's statement 8. Impact of declining interest rates on mortgage approvals 9. Changes to tax rules in Denmark 10. Competition among banks on home loans
- In the realm of personal-finance, the surge in Danish real-estate prices has led to an increase in the required income for mortgage approval, considering the guideline that total loans should not exceed four times gross annual income.
- The decline in mortgage interest rates, as mentioned by Jeppe Juul Borre, has offered some respite to home buyers in financing the increasing real-estate prices, but the overall challenge remains.
- Given the news about changing tax rules in Denmark, such as the increase to the tax deduction for employed individuals and the adjustments to upper tax brackets, the financial landscape for investing in Danish real-estate may be more favorable today compared to last year.
