Contribution rates explained: how to compare mortgage lenders’ contributions

The contribution rate (bidragssats) is the ongoing price you pay the mortgage lender on top of the interest. It covers the lender’s work administering and funding your loan, and it is calculated as a percentage of your outstanding debt each payment period. So it is not a one-off amount, but a payment that stays with you for as long as you have the loan.

The rate ranges from about 0,2 % a year on the cheapest part of a fixed-rate loan to just over 2,5 % a year on the most expensive part of an interest-only F1 loan, depending on loan type, loan-to-value and interest-only period (the lenders’ price lists, 2026). If, for example, you have an interest rate of 3,5 %, a contribution rate of 0,7 % can be added on top, and suddenly your real financing cost is higher than the interest rate alone suggests.

One detail that often causes confusion: you pay the contribution to the mortgage lender, not to the bond investors. The interest, on the other hand, goes to those who own the bonds behind your loan. These are two different recipients, which is why you should look at the contribution rate separately when you compare loans.

One advantage is that both interest and contributions are tax-deductible, while repayments are not. In 2026 the deduction is worth about 33 % of the negative net capital income up to 50.000 kr. (100.000 kr. for married couples), so part of the contribution actually comes back via your tax.

The most important thing to understand is how the rate is set. It depends on your loan type and your loan-to-value, not on your personal credit profile. Two borrowers with the same loan and the same loan-to-value can therefore in principle get the same rate, regardless of what the rest of their finances look like.

That makes the contribution rate comparable across lenders, and it also means you can sometimes lower it by changing the loan structure or moving the loan elsewhere. You can read more about that below.

Why the contribution rate rises with the loan-to-value

When the lender sets your rate, it looks at four things:

• What the home is worth right now

• How much you borrow relative to that value

• Whether the loan is a variable-rate (flex) loan or a fixed-rate loan

• Whether you have an interest-only period

Loan-to-value carries the most weight of the four, and it is also the one you can influence most yourself, through your down payment.

The calculation is done in layers. The loan is divided into loan-to-value bands, for example 0-40 %, 40-60 % and 60-80 %. Each part of the loan pays its own rate, and afterwards the layers are added together into one overall rate. The split across bands is set at the time you take out the loan, and the contribution is then calculated on your outstanding debt. The lender can, however, change the rates themselves with notice during the term of the loan.

This is where your loan-to-value affects the contribution rate. The rate is highest in the 60-80 % band, lower at 40-60 % and lowest below 40 %. So if you borrow close to the limit, you pay the most expensive rate on the top part of the loan – a quarter of the amount at 80 % loan-to-value – while a large down payment pushes more of the loan down into the cheaper layers.

Realkredit (Danish mortgage credit) can finance at most 80 % of the home’s value. The rest is typically covered by a bank loan and your own down payment of at least 5 %. A fixed rate with repayments is generally the cheapest combination, because it avoids both the surcharge flexible loans typically carry and the one an interest-only period triggers.

How an interest-only period and a variable rate affect your contribution rate

If you choose an interest-only period, your contribution rate usually rises, especially on the part of the loan above 60 % loan-to-value. The lender adds a surcharge because you postpone the repayments and thereby increase the risk on the loan.

The same pattern applies when the interest rate is variable. A flex loan has a higher rate than a fixed-rate loan, and the shorter the period for which the interest rate is fixed, the more expensive the contribution becomes. Among flex loans, the contribution rate is therefore typically highest on an F1 loan and lower on an F5 loan, because a short fixing period makes finances less predictable for you and the lender. The very short F-kort loans are different, though: in the tables below they cost as much as F5 or more in the 60-80 % band, but at some lenders less in the lower bands. A short fixed-interest period and an interest-only period thus both push the rate upwards, and if you combine them, you pay for both surcharges on top of each other.

There are also limits to how long and how much you can stretch the interest-only period. It is available at most up to 80 % of the home’s market value, and for holiday homes the ceiling is 75 %. Under the Danish Mortgage Credit Act, an ordinary mortgage can be interest-only for 10 years in total at most. If you want an interest-only period again afterwards, you must take out a new loan, which the lender must approve. Loans with an interest-only period of up to 30 years also exist, but only if you borrow less relative to the home’s value. Interest-only loans were introduced in Denmark in 2003.

The surcharge rates change, and the lenders have adjusted them markedly in the run-up to 2026. Here are the latest changes:

• Realkredit Danmark removed the contribution surcharge for interest-only periods at loan-to-value below 60 % from 8 April 2025, while the surcharge today is 0,80 % a year on the part of the loan above 60 % loan-to-value (price list of 23 September 2026).

• From 1 April 2026, Totalkredit lowered the surcharge for interest-only periods on owner-occupied homes from 0,80 % to 0,65 % on the part of the loan above 60 % loan-to-value (price list of 1 July 2026).

• Since 11 February 2026, Jyske Realkredit has had a surcharge of 0,00 % at loan-to-value below 60 % for F5/F6 and fixed-rate loans with an interest-only period of up to 10 years, and 0,62 % at loan-to-value above 60 %.

Compare the four lenders’ current contribution rates

If you want to compare contribution rates, there are four names that cover almost the whole market: Realkredit Danmark (owned by Danske Bank), Nordea Kredit (owned by Nordea), Totalkredit/Nykredit and Jyske Realkredit. One important detail before you start phoning around: you usually get the loan through a bank that works with the lender, so it is your bank you need to contact for a quote.

The figures below are the rates for new loans with repayments for owner-occupied homes, according to the lenders’ price lists in 2026, split into the loan-to-value bands 0-40 %, 40-60 % and 60-80 %.

Fixed rate with repayments

F-kort with repayments

F5 with repayments

The lenders change their rates during the year, so always check the current price list before you choose a loan.

Totalkredit’s rates are net of the KundeKroner discount of 0,25 percentage points, which private Totalkredit borrowers receive up to and including 2029. The nominal contribution rate before the discount is 0,45 % / 0,85 % / 1,20 % for fixed rate with repayments.

How to negotiate or move the loan to save money

The first thing to understand if you want to negotiate your contribution rate is that there is not really anything to negotiate. The rate is not individual. It is set on the basis of your loan type and your loan-to-value, not your personal credit profile, and it is the same for everyone with the same loan and the same loan-to-value.

That does not mean you are without options, though. You can change it by changing the structure of the loan. A lower loan-to-value moves you down into a cheaper band, and if you choose repayments instead of an interest-only period, you avoid the surcharge for interest-only. A fixed-rate loan also has a lower contribution rate than a flex loan. You can often negotiate the bank’s own fees, while the lenders’ fees are set out in their price lists. The registration fee (tinglysningsafgift) goes to the state and cannot be negotiated.

If you want to get away from your current rate altogether, it typically requires switching to another lender, and a switch in practice means refinancing the loan. That manoeuvre normally costs between 10.000 and 30.000 kr., and on most ordinary home loans the bill comes to around 10.000 to 20.000 kr. Part of the amount is the registration fee: a fixed fee of 1.825 kr. plus a variable fee of 1,25 % of any increase in the principal.

There are a few rules of thumb you can measure your own situation against:

• The interest rate should have changed by about 1-2 percentage points.

• The outstanding debt should be at least about 500.000 kr. (Nordea mentions 750.000 kr. as more realistic).

• You should have at least 10 years left on the loan or expect to stay in the home for 7-10 years.

If all three apply, it may pay to work out the numbers for a switch. The difference between the lenders is not always large, though. On a fixed-rate interest-only loan, the part of the loan above 60 % loan-to-value costs 1,85 % a year at Totalkredit (1,60 % with KundeKroner) and 1,81 % at Realkredit Danmark (price lists valid as of 1 July and 23 September 2026). So work out the numbers for your own loan-to-value and loan type before you move the loan.

Three concrete steps to save on your contribution

Here are the three steps that make the biggest difference.

1. Get quotes from at least two lenders, and compare the total APR (ÅOP) rather than just the coupon rate. The coupon rate says nothing about what the loan really costs you once contributions and fees are included.

2. Call your bank and ask whether they can match a competing offer. Some banks contribute towards the costs if you switch, so it is worth asking directly.

3. If your home has risen in value, or you have repaid part of the loan, you can ask your lender whether a new valuation or a refinancing can move you down into a cheaper loan-to-value band. The rules differ from lender to lender. At Nordea Kredit, for example, the rate is only calculated from a new valuation if you increase the loan by at least 100.000 kr. or choose a new interest-only period of more than 3 years.

The rates change on an ongoing basis. Realkredit Danmark, Nordea Kredit and Totalkredit have all lowered parts of their rates in 2025 and 2026, so it pays to check your own loan against the current price list from time to time.