The Danish government wants to help first-time home buyers enter the housing market. New proposals would offer improved mortgage options and extended student loan repayment periods.
Culture Minister Jakob Engel-Schmidt confirmed the housing initiative. He said too many young people cannot afford their first home.
First-time buyer numbers dropped nearly 25 percent in recent years. Many young Danes watch from outside the housing market without being able to participate.
Engel-Schmidt said owning property makes financial sense for most people. The government wants more Danes to become homeowners.
New mortgages would feature 40-year repayment periods. Buyers could borrow up to 80 percent of their home's value.
Monthly payments would drop by about 560 kroner per million borrowed. That equals roughly 6,700 kroner in annual savings.
Student loan repayment periods would extend from 15 to 25 years. Longer terms mean better credit ratings for young applicants.
Banks would gain more flexibility in assessing borrower finances. Future earnings could count toward loan eligibility.
The housing package comes as municipal elections approach in two weeks. Housing remains a hot political topic across Denmark.
These measures aim to address growing concerns about housing accessibility. Young people increasingly struggle to enter one of Europe's most expensive property markets.