require at least 20% down for their system to work would be a nonstarter for so many people.
That’s not really how it works, though. You actually only have a to put down 5 percent or more in Denmark. Much like the US.
The difference is that, in Denmark, the mortgage (the loan with the covered bond) can only finance 80 percent of the value, the rest can be financed by a regular bank loan. So 80 percent mortgage and 15 percent bank loan.
I was going off of the article, which stated that 20% is required in Denmark. Seems that they didn’t specify that well, so I apologize for the ignorance.
That’s not really how it works, though. You actually only have a to put down 5 percent or more in Denmark. Much like the US.
The difference is that, in Denmark, the mortgage (the loan with the covered bond) can only finance 80 percent of the value, the rest can be financed by a regular bank loan. So 80 percent mortgage and 15 percent bank loan.
I was going off of the article, which stated that 20% is required in Denmark. Seems that they didn’t specify that well, so I apologize for the ignorance.
No worries. The article isn’t clear on that.