The debt factor is the most important number since it informs the bank about your creditworthiness. The most important statistic is produced by dividing your entire debt by your gross income, and the smaller the amount, the better the situation is considered. Whether you have a vehicle loan, a school loan, a bank overdraft, or another kind of debt, it must be included in the debt component. The following are the suggested upper and lower limits:

  • The cost of an owner-occupied home is 3.5 times the family income before taxes.
  • Co-operative housing: 1.75 times the household’s pre-tax income ensured that the co-operative housing organization had sufficient funds.

The rules, which were developed by the Danish Financial Supervisory Authority in January 2021 and are based on the “Guidelines for financial reporting for credit institutions and stockbroking firms, and other similar organizations,” were first published in 1997. In this situation, you should consider purchasing a Rasa for sale.

Mortgages are used in certain situations

The mortgage firms and banks have the option of deviating from the rules if the borrower has a substantial quantity of accessible funds and a strong financial position. In reality, banks also provide loans to people who have a debt factor of between 4 and 5 in regions with high home values, which is common in these areas.

The guidance does not impose any restrictions on the amount of money that banks may lend. While on the other side, the handbook provides guidance on how banks should record and report their loans in the accounts. The bank or Mortgage Company may be liable to extra provisions if the Danish Financial Supervisory Authority determines that the bank or Mortgage Company has failed to comply with the rules. In the financial industry, these provisions are seen as an additional cost. If you purchase owner-occupied home, you may obtain an estimate of how much you can expect to pay for it using the calculator below.

Calculate the amount of money you can borrow to purchase a house

You may get an idea of how much you can expect to pay for owner-occupied home by using the calculator provided below. The calculator may be used in conjunction with the purchase of owner-occupied property, while different loan requirements apply for other types of housing, such as cooperative housing, according to the lender.

Before using the calculator, keep in mind that the payment must be at least 5% of the purchase price in order to be valid. Adjust the amount of your payment such that it is at least 5 percent of your total payout. In most cases, the total gross debt of a family cannot exceed four times the entire income of the household. The debt factor, on the other hand, has a propensity to increase beyond four in the two metropolitan regions.


If you are over 60, you should be aware that mortgage lenders will not approve a debt factor that is much higher than 2, even if your financial situation is solid. The calculator is supposing that you do not have any substantial savings in addition to the money needed for the required payment when using the calculator.