Mortgages without a permanent job, part-time or as a student

Buying your first home in 2026 takes planning. The bank will want to see that your finances hold up before you get a yes to a home loan.

They look at five things in particular. Your income. Your debt, which ideally should not exceed four times your annual income. Your monthly disposable income after fixed expenses, where the bank counts fixed items such as unemployment insurance fund membership, transport and childcare. How large a share of the home’s price you need to borrow. The mortgage loan (realkreditlån) can be at most 80 % of an owner-occupied home’s value, and you normally have to pay at least 5 % as a down payment yourself, so the rest is typically borrowed from the bank. And a stress test. If you choose a variable rate or an interest-only period, your finances must, as a rule, be able to carry a 30-year loan with a fixed rate and repayments.

This often means a no for young first-time buyers with tight finances. If you lack savings for the down payment, or have a short or uncertain job history, the application often falls through.

A rejection is not the end. A co-applicant can improve the figures. A guarantee can also be a solution, and a parental purchase can come into play later if it suits your situation. Banks are setting tough requirements right now, but you are in a stronger position when you know your options and choose a realistic way forward.

Co-applicant for a home loan – when does it make sense, and what does the bank require

A co-applicant for a home loan is a borrower alongside you and is responsible for the whole loan. You are jointly and severally liable. This is not the same as a guarantor, who is only liable if you do not pay. The bank can demand the full amount from either you or the co-applicant.

When does it make sense to have a co-applicant?

• If your combined income gives more room in the budget after fixed expenses, so the finances look stronger.

• When the co-applicant has a steady salary and low debt, which strengthens the credit profile in the bank’s eyes.

• If your employment history is short or uncertain, a stable co-applicant can be the difference between rejection and approval.

What documents does the bank need?

• Payslips for the last three months for both you and your co-applicant.

• Annual tax statement or data from eIndkomst (the Danish income register) to confirm income.

• Bank statements for 3 to 6 months, so the bank can see cash flows and fixed expenses.

• An overview of existing debt with creditors. The bank also checks the debt ratio for both of you.

• A budget showing shared living costs, and how you plan your finances together.

Pitfalls of having a co-applicant:

• Both are fully liable. If one stops paying, the other must cover the entire payment.

• If you also own the home together and have put in different amounts, you should draw up a co-ownership agreement (samejeoverenskomst) and possibly wills, so the split is clear later.

• The loan counts towards both borrowers’ debt and can affect the ability to get new loans or credit in future. Think carefully before signing.

Guarantee for a home loan – when does it make sense, and how does it work in practice

A guarantee for a home loan is a form of security in which a third party, often a parent, promises to pay if you cannot. It is typically used when your own finances cannot support the bank loan that has to cover the rest beyond the mortgage loan, or when the down payment is not large enough. The guarantee can make the home purchase possible even when the budget is tight.

1. Types of guarantee: There are simple guarantees and joint-and-several guarantees (selvskyldnerkaution). For home loans, banks almost always require a joint-and-several guarantee, and the bank can then demand the money directly from the guarantor without first trying you.

2. Requirements for the guarantor: The bank assesses whether the person who wants to act as guarantor has a steady income, low debt and a positive net worth. A separate credit assessment is often carried out, focusing on disposable income. Some banks also require a mortgage on the guarantor’s home as additional security.

3. Risk and limits: A guarantee carries great risk for the person providing the security. That is why you should agree on a maximum amount and a time limit, to avoid unpleasant surprises. In the event of default, the case can end in a forced sale or a claim against the guarantor.

The law also sets limits for private guarantors. When the guarantee is not given as part of a business, the guarantor can be liable for no more than the principal of the loan as it stood when the guarantee was agreed. As a rule, the guarantee lapses after 10 years, unless the bank has enforced it before then.

Parental purchase in Denmark – rules, tax and when it is smarter than a guarantee

A parental purchase (forældrekøb) means that parents buy a flat in their own name and rent it out to their child at market rent. It helps you onto the housing market when your own finances do not stretch to a loan or deposit. Depending on income and rent level, you can apply for housing benefit, which can ease the budget.

Tax on a parental purchase works like this: the parents must always pay tax on at least the market rent. Under the ordinary rules, the profit before interest is taxed as personal income, and interest expenses are deducted from capital income. Running costs such as maintenance, administration, insurance and property taxes can be deducted, but the home itself cannot be depreciated. The business tax scheme (virksomhedsordningen) and the capital return scheme (kapitalafkastordningen) can be chosen, but since 2021 they often give no advantage for a parental purchase if the parents do not run another business. If the home is later sold at a profit, the gain is subject to property gains tax.

The financing typically consists of an 80 per cent mortgage loan, a bank loan of about 15 per cent and the rest as a cash down payment. The bank assesses the parents’ finances, not the child’s salary or debt. Documentation of the market rent must also be available, typically through a tenancy agreement under the Danish Tenancy Act.

A parental purchase makes the most sense when you do not meet the bank’s requirements for stable income or savings for the down payment. It requires a local market with stable rental demand; otherwise the parents risk periods without rent. The parents also need both financial room for manoeuvre and the appetite to take on the risk of ownership instead of simply providing a guarantee.

Permanent employment and income – what banks look for before approval

The bank will usually want to see payslips, a permanent job and stable finances for a few months before it says yes to a home loan. 3 to 6 months in permanent employment makes it easier. If you have a fixed-term contract, show an extension or strong seniority in your industry. The point is simple: you must show that your income is stable and will not disappear any time soon.

Variable income such as bonuses, overtime and commission often counts only partly. The bank will typically want to see 12 to 24 months of history before it counts any of it. SU (the Danish student grant) and unemployment benefit almost never count as lasting income for a loan, because stability is lacking. If you are a student, it is therefore rarely your own income that carries the loan, and then a co-applicant, guarantor or parental purchase are the obvious routes. If you work part-time, the bank looks especially at whether the employment is permanent and whether the pay is stable. A lower salary does mean, however, that you can borrow less.

If you are self-employed or a freelancer, the bank will, as a rule of thumb, look at the accounts for the last two years. They look for positive equity and a business that does not fluctuate too much. Uneven income often means you will be required to have larger savings and a higher down payment before the loan goes through.

Make sure you have the paperwork ready in advance. Have your employment contract with start date and salary, payslips for the last few months, eIndkomst, annual tax statement, pension contributions and any information on child maintenance ready. If you have had gaps in income, be ready with a short explanation. That gives the bank peace of mind and makes the process faster.

Rejected for a home loan – next steps and how to strengthen your application

Being turned down for a home loan hurts, but the dream lives on. Start by tidying up your finances over the first few months. Pay down credit card debt and other expensive consumer debt. Avoid new loans and purchases on instalments. Save a fixed amount every month, even small sums. It shows the bank that you have your finances under control.

Once the short-term steps are in place, shift your focus to the coming months. Build up a cash down payment, at least 5 % plus all purchase costs. Keep your debt ratio under four by clearing consumer debt. Consider a co-applicant if you are both ready to be fully liable for the whole loan. That can improve your options.

In the longer term, more fundamental changes are needed. Aim for permanent employment or document stable income over time. If you are self-employed, raise your gross margin and equity, and get accountant-certified accounts that show healthy operations. Banks reward long-term improvements, even though it takes time.

When you are ready to apply, Brikk can put you in touch with a lender. Read more on Brikk’s page about home loans. You can also sign up to Brikk’s buyer register and be notified about homes before they are advertised.