What is the contribution rate (bidragssats) on a Danish mortgage?
The contribution rate (bidragssats) is an ongoing charge to your mortgage credit institution on top of the interest. What drives it, whether it can change, and how it affects the price.
A realkreditlån is a Danish mortgage loan from a mortgage credit institution (realkreditinstitut), funded by bonds that investors buy. On top of the interest, you pay the institution an ongoing charge called the contribution rate (bidragssats). It is a separate cost, and it belongs in any comparison of loan offers. This article explains what the contribution rate covers, what typically affects its size, whether it can change during the loan, and why you should add it to the interest rate when you compare offers. It is based on Forbrug.dk (the Danish consumer information site), Finans Danmark (the Danish financial sector association) and, for definitions, the Danish Consumer Council Tænk.
The key points
- The contribution rate is an ongoing charge to the mortgage credit institution, on top of the interest on the loan.
- According to Forbrug.dk, it is set on the basis of the loan type and how much of the home is mortgaged when the loan is taken out. It is normally paid together with the interest as part of your payment.
- According to Forbrug.dk, the contribution rate can change during the term of the loan if market conditions change.
- Two loans with the same interest rate can have very different total prices once the contribution rate is added.
- APR (ÅOP, annual cost as a percentage) is, according to Forbrug.dk, mainly useful for comparing loans with the same amount and term.
What is the contribution rate?
When you take out a realkreditlån, you pay two main items on an ongoing basis. The first is the interest, which goes on to the investors who own the bonds behind your loan. The second is the contribution rate (bidragssats), which stays with the mortgage credit institution. Forbrug.dk describes it as an administration charge that the institution takes for arranging and administering the loan, and says that the institution is only the intermediary for the loan itself.
The Danish Consumer Council Tænk defines the payment on a mortgage credit loan (the ydelse) as the sum of the repayment of principal (if you repay), the interest and the contribution. The contribution rate is therefore part of what you pay every month or quarter, together with the interest.
Where your documents from the institution show interest and contribution separately, it is a good habit to look at the specified statement at least once a year. That way you see what you are actually paying for, and you notice if the contribution rate has changed since last time.
What affects the size of the contribution rate?
Forbrug.dk says that the contribution rate is set on the basis of the loan type and how large a share of your home is mortgaged when the loan is taken out. Tænk adds the following:
- The loan-to-value ratio (belåningsgrad), meaning how much of the home's value is financed by loans. According to Tænk, the contribution rate is higher the more you have borrowed relative to the value of the home. For owner-occupied homes it is typically divided into the bands 0-40, 40-60 and 60-80 per cent.
- The loan type. According to Tænk, adjustable-rate loans (rentetilpasningslån) and loans with an interest-only period (afdragsfrihed) typically cost more in contribution than fixed-rate loans.
Because the contribution rate is a charge from the institution itself, two loans with exactly the same interest rate can end up with a very different total price. It is therefore not enough to look at the interest rate alone when you compare loans. The exact bands and levels vary from one institution to another, so ask your own institution for the figures that apply to you.
Can the contribution rate change during the loan?
Yes. The contribution rate is not necessarily fixed for the whole term of the loan. According to Forbrug.dk, the institution can change it during the term of the loan if market conditions change, and this applies even if the interest rate is fixed. In principle, your contribution rate can therefore rise even if you have not changed anything about your loan.
The sources describe the notice period differently. Forbrug.dk says that the institution must notify you half a year before an increase takes effect, and that during those six months you can repay the loan without a repayment fee and have it converted to another home loan with a 50 per cent discount on the bond-price deduction (kursskæring) and brokerage fee (kurtage). Tænk says that the institution can change the contribution rate at short notice, and that this is stated in your loan terms. Read your loan terms before you sign, and ask the institution directly what applies to your loan.
Contribution rate and APR
The contribution rate is a recurring cost alongside the interest, so it matters for what the loan costs you per year. APR (ÅOP, årlige omkostninger i procent) is the total annual cost of a loan expressed as a percentage of the loan amount. According to Forbrug.dk, it is mainly useful for comparing loans with the same loan amount and term. Forbrug.dk also says that mortgage credit institutions that advertise home loans with figures or interest rates must state the APR, the total loan amount, the term and the repayments. The sources we have used do not say exactly which items are included in the APR on a mortgage credit loan, so ask the institution how the APR it quotes has been calculated and whether it includes the contribution rate. The glossary has a short explanation of APR.
Can you lower your contribution rate?
There is no guarantee, but some situations make it worth looking into:
- If your loan-to-value ratio has fallen markedly because you have repaid part of the loan or the value of your home has risen, it may be worth asking your institution whether it gives access to a lower contribution rate, possibly by converting the loan.
- If you have chosen an interest-only period, consider whether repaying principal could lead to a lower contribution rate when the interest-only period is due to be renewed or the loan is converted. According to Tænk, contribution rates are higher on interest-only loans than on loans with repayments.
- Get offers from several mortgage credit institutions, because the contribution rate depends on the institution's own pricing for loan type and loan-to-value ratio. Forbrug.dk says that you have to approach several institutions yourself if you want offers from more than one.
Converting a loan to get a lower contribution rate has costs, including the bond-price deduction (kursskæring) and fees. Whether it pays off depends on how much you save in contribution rate over the remaining term compared with what the conversion costs. Read more about the whole mortgage credit loan and the other terms involved in mortgage credit loans explained, and about how to compare total loan offers in how to compare home loans.
Put the calculation down in writing before you decide: note your current contribution rate and payment, the new loan on offer with its interest rate, contribution rate and any bond-price deduction, and the one-off costs of a conversion. Only when you can set the total saving over the remaining term against the one-off costs can you judge whether a conversion really pays off for you.
What to ask the bank or mortgage credit institution
- What is my specific contribution rate, and how is it made up of loan-to-value ratio, loan type and repayment profile?
- What criteria apply to your changing the contribution rate during the term of the loan?
- Does my contribution rate fall automatically if my loan-to-value ratio falls, or do I have to do something?
- What does it cost to convert the loan if I want to try to get a lower contribution rate?
- How is the contribution rate treated in the APR you have given me?
Is the contribution rate the same at all banks and mortgage credit institutions?
No. According to Forbrug.dk and Tænk, the contribution rate depends on the loan type and on the loan-to-value ratio, and the institution can change it during the term. Each institution therefore quotes its own figures, which is one of the reasons it can pay to get and compare several offers.
Do I pay a contribution rate if I have an interest-only period?
Yes. On an interest-only loan you pay interest and contribution but make no repayments of principal for a period. According to Tænk, the contribution rate is higher on an interest-only loan than on a loan with repayments.
Why can two loans with the same interest rate have different contribution rates?
Because the contribution rate is a separate charge to the individual institution, not part of the bond-based interest rate. According to Forbrug.dk and Tænk, it depends on the loan type and the loan-to-value ratio, so the same interest rate does not mean the same contribution rate.
Read also: private customers, mortgage credit loans explained, fixed or variable interest rate, how to compare home loans and APR and loan term.
Fact check and sources
- Applies to
- Private homeowners with, or taking out, a mortgage credit loan (realkreditlån) in Denmark, 2026. Forbrug.dk's home loan page was last updated on 12 August 2021.
- Fact checked
- 13 October 2026