The Danish government wants to make home ownership easier for young people. They announced new housing measures this week.
Culture Minister Jakob Engel-Schmidt revealed the plan. He said first-time buyers need better access to the housing market.
"The number of first-time buyers dropped by nearly 25 percent," Engel-Schmidt said. "Many young people watch from outside but cannot participate."
He added that home ownership brings financial benefits. The government wants more Danes to own their homes.
The key proposal extends mortgage repayment periods to 40 years. This applies to loans covering up to 80% of a property's value.
The longer payment period would lower monthly costs. Borrowers could save about 560 kroner monthly per million borrowed.
Student loan repayment terms would also extend. The current 15-year maximum could stretch to 25 years.
"This improves credit ratings," Engel-Schmidt explained. "People can borrow more than before."
Banks would get more flexibility in assessing finances. They could consider future earnings during credit evaluations.
The housing market remains a hot political topic. Local elections occur in under two weeks.
These measures address real affordability concerns. Yet longer loan terms mean paying more interest over time.
First-time buyers face genuine barriers in Denmark's expensive market. The government's plan offers immediate relief but carries long-term costs.