Market Development for Mortgage Credit Institutions 2021

Published 23-01-2023

The total pre-tax profit of mortgage banks increased in 2021. The result was DKK 20.9 billion, versus DKK 17.2 billion in 2020. The increase in profit should be seen in the light of the impact of the COVID-19 crisis on the result for 2020, with general declines in revenue items and higher impairments.

Mortgage bank lending increased by 1.4% in 2021. Loan growth was supported by low bond yields and high property prices. Long-term mortgage rates increased in 2021, widening the gap between long-term and short-term interest rates. This may have led some of the borrowers to opt for variable interest rates and deferred amortisation in order to obtain a lower yield. The share of variable rate new loans and interest-only new loans increased from 32% and 41%, respectively, in 2020 to 47% and 51% in 2021.

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Last updated 23-01-2023