There are a lot of people moving in rental housing in Denmark and it is often quite high deposits that are needed to move into several of the different rental homes, as it has become very normal for the housing associations to take both 3 months prepaid rent, but also additional 3 month deposit. Here it can be quite difficult for many Danes to have such a savings ready, since an apartment with a rent of 6000, – DKK therefore costs 36,000 in deposit which there are not many who can afford and especially students are affected by this problem.
Can I Get a Loan for Resident Deposits?
You can apply to your municipality for a loan for resident deposits if you earn under 246,000 (2019) per year. If there are children in the household, the amount will be increased by DKK 43,200 (2019) for each child you have, but a maximum of up to 4 children, after which no more can be increased.
If you choose a single room apartment, the household income must not exceed DKK 163,359 per year, however, the increased amount when there are children in the household unchanged and have the same rules.
If you cannot meet these requirements and the bank cannot help you, there are also comparison pages on different types of loans. Loan money now if you have received a rejection of your application for a loan from your municipality for a resident deposit.
How Much can you Borrow in Residential Deposits?
You can apply to borrow your entire occupancy deposit for your rental home.
Who Gets Rejected?
You may be refused your application even if your household’s income is lower than the above limit if the municipality considers that you do not have a real need for this loan. This can be, for example, if you have a wealth / savings that is large enough to cover this deposit or if your income is only below this limit for a period. It can also be because you already have a reasonable accommodation in the same area / municipality or urban area. Try to make a budget, because with a budget you get an overview of your expenses and income, and then you can see if it is worthwhile to move.
It can also be if the rent on the rental property exceeds half of your household income.
And last but not least, it may also be because you have previously approved your application for loan for resident deposits, but that you have not previously been repaid your debt. It can also be because you have been put out of your home due to payment misconduct. You can apply for a loan for resident deposits by clicking here.