Prerequisites of the Danish mortgage credit system
The Danish mortgage credit system provides a number of legal protections to bondholders:
  • A title number system.
  • A land registration system.
  • An efficient compulsory sale system.
  • A balance principle.
  • Regulation on loan-to-value limits, maturities and repayment profiles.
  • A privileged position for bondholders in case of bankruptcy.
One of the prerequisites for the smooth functioning of the Danish mortgage credit system is the Danish title number system and land registration system. The system ensures that ownership and encumbrances on individual properties are easily identified and that the information is available to the public.

Another prerequisite is the Danish compulsory sale system, which ensures that a mortgage credit institution can enforce its rights if, for some reason, a debtor cannot pay. The mortgage credit institution can take possession of the property by compulsory sale and resell it to cover for the loan it has granted.

Since the beginning of the 19th century, Danish mortgage bonds have been traded as securities. Today, mortgage bonds are quoted on the Copenhagen Stock Exchange, which is the official Danish marketplace for shares and bonds. This ensures transparent and orderly trading in a fair market under public supervision.

Danish mortgage credit institutions are monitored by the Danish Financial Supervisory Authority, which is an institution under the Ministry of Economic Affairs and Trade.

Contact us

If you have any questions, feel free to contact us:

Bond Investor Contact:
Jens Kristian Kimper
+45 4513 2039
jekk@rd.dk