First home purchase: How to prepare financially
Buying your first home is a major milestone, and a major financial decision. Here's an overview of what the bank expects and how to prepare your finances.
What banks require from first-time buyers
Banks have stricter requirements for mortgages than other loan types. Here are the key factors:
- Down payment of minimum 5% of the home's price, the requirement under the good-practice rules for mortgage credit
- Disposable income that at minimum follows the Danish Debt Agency's 2026 rates, 13,360 DKK for couples and 7,880 DKK for singles, but the bank typically expects more for a home purchase
- Stable income documented over at least 3-6 months
- Low or no consumer debt
Down payment and savings
The down payment is often the biggest challenge for first-time buyers. Under the good-practice rules for mortgage credit you must generally put in at least 5% of the home's price yourself (Finanstilsynet), for a home priced at 2 million DKK that's at least 100,000 DKK. The bank can require more if a concrete assessment of your finances and net worth calls for it.
Beyond the down payment, you need to afford transaction costs: registration fees, a lawyer, title insurance and the bank's fees. In Bolius' example calculation for a home priced at 2.5 million DKK, the total costs came to just under 4% of the purchase price; your own figure depends on the home's price and your specific loan terms.
How to prepare
Start by knowing your real disposable income. Upload your bank statements to Reelt and get a documented overview of your finances.
With a clear report, you can approach the bank with documentation showing your actual financial situation, not just estimates and guesswork.