Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322371 
Year of Publication: 
2025
Series/Report no.: 
Economic Memo No. 2
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
Almost half of mortgage lending to homeowners in Denmark consists of 30-year fixed-rate loans. The loans are callable, so homeowners can redeem their loan and take out a new one if, for example, they want to refinance at a lower rate if interest rates fall. We calculate a financial incentive for each fixed-rate mortgage and show that only half of the loans with a refinancing incentive are actually refinanced. This indicates that more homeowners could have strengthened their financial resilience by responding to the incentive, especially among homeowners with lower incomes.
Document Type: 
Research Report

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