Banklån (supplementary bank loan)

A bank loan is the supplementary loan you take on top of the realkredit mortgage in Denmark, usually covering the slice of the purchase between 80 % and the last percent up toward 95 % of the value. Its rate is higher than the realkredit loan and terms vary more by bank.

Realkredit covers at most 80 % of an owner-occupied home. You put in at least 5 % yourself as the down payment, and the bank loan finances the gap between.

The rate is higher than on the realkredit loan because the bank loan sits on top and carries the most risk. The term is often shorter than the up-to-30-years of the realkredit loan.

The larger your down payment, the smaller the bank loan you need. It is the most expensive part of the financing, so more savings noticeably lowers your total monthly cost.

Bank-loan terms and rates are less standardised than realkredit, so it pays to gather offers from several banks.