//English version published on 25 September 2026. Original release published in Danish on 21 September 2026//

Danske Bank and Realkredit Danmark are now adding to their offering of favourable-term energy improvement and climate adaptation loans by introducing healthier home renovation loans for making homes – year-round residences and holiday homes – healthier to live in. This means that homeowners can in future benefit from particularly favourable terms on loans for the purpose of making documentable and Danske Bank-approved renovations to improve the general condition, indoor climate and state of repair of their home. The new initiative applies to personal customers throughout Denmark but will especially help customers in rural areas, where many homes are older and necessary investments can have a relatively large impact on a homeowner’s finances.

Particularly attractive loan terms
Healthier home renovation loans are offered as bank loans from Danske Bank with the same attractive interest rate as loans offered for making energy-efficiency and climate adaptation improvements. The attractive loan terms apply if the entire loan amount is used for Danske Bank-approved home improvement upgrades to make homes healthier to live in. The loan is available with terms extending up to 10 years and is offered up to a maximum of DKK 500,000. In addition to the attractive interest rate, healthier home renovation loans are exempt from processing fees and origination fees.

“As well as wanting to help more people in Denmark optimise their homes through energy improvements or climate adaptation measures, we also want to provide a greater incentive for people to invest in specific improvements to make their homes healthier to live in and at the same time help protect their home’s value,” says Mark Wraa-Hansen, Head of Personal Banking at Danske Bank Denmark.

He points out that many homeowners, particularly in rural areas, face a significant renovation project when they have an asbestos roof that needs to be replaced. And this is also an area that has received recent political attention.

Focus on the needs of rural areas
Personal customers can apply for a healthier home renovation loan for purposes approved by Danske Bank and that are not related to ordinary home refurbishment and upgrading but that specifically make the home healthier to live in, more robust and more usable. Replacement of damaged asbestos roofs is one of the improvements for which a homeowner can seek financing with favourable terms. In addition, the new loan offering covers renovations to protect a home from radon, to connect a home to public water supply and sewage systems, and to replace outdated or faulty electrical installations and wood-burning stoves.  

Customers can also choose home healthier home renovation financing in the form of a mortgage loan from Realkredit Danmark. While a bank loan may be relevant for smaller and more limited projects, a mortgage loan may be an option when undertaking major improvements. These loans can be added as part of the long-term financing of the home, and they are offered with loan maturity terms extending up to 30 years. If the homeowner chooses to take out the loan as a mortgage loan from Realkredit Danmark, no loan fee or processing costs are payable, and the other terms are the same as the standard costs and fees.

Although the new loan option applies throughout Denmark, Kamilla Hammerich Skytte, CEO of Realkredit Danmark, is keen to point out the particular relevance of the loan option for older homes in rural areas constructed using asbestos-containing materials (ACMs) or that have older utility installations and private water or wastewater solutions. The major financial investment required in such cases can often be difficult to justify in relation to the value and marketability of the property.

“Some improvements aren’t made just to install a new kitchen or to quickly increase the property’s sales price. They are made to maintain the condition of the home over the long term, prevent further deterioration and ensure that the home remains healthy to live in and usable. So it’s important for us to be able to offer financing to homeowners across Denmark – including in rural areas where needs may be very specific. This is precisely the type of need that the home health improvement loans will help homeowners meet,” says Kamilla Hammerich Skytte, CEO of Realkredit Danmark.

Not a standard renovation loan
Healthier home renovation loans are available only for specific and documentable home renovations that make a home healthier to live in, and they cannot be used for general cosmetic improvements such as installing a new kitchen or bathroom. The purpose of the loan must be approved by the bank, and the loan applies only to certain types of home improvements. The customer must be approved and must document how the entire loan amount will be used – for example by providing a quote from a tradesperson or builders’ merchant, a home condition report or other relevant documentation.

With regard to asbestos, Danske Bank and Realkredit Danmark stress that an intact roof should not be replaced solely because of the material it is made from. The new loan options are relevant if a specific assessment identifies a need for action to be taken and the bank approves the work.  

Facts about healthier home renovation loans:

• The loan is for homeowners throughout Denmark and can be used for year-round residences and holiday homes.
• The financing may be provided either as a bank loan from Danske Bank or as a mortgage loan from Realkredit Danmark.
• The loan can be used to replace damaged asbestos roofs, finance renovations to provide radon protection, connect to public water supply and sewage systems, and replace outdated or faulty electrical installations and wood-burning stoves.
• The loan cannot be used for ordinary cosmetic renovations.
• The customer must be approved and must document how the entire loan amount will be used.
• An individual assessment will determine whether the home health improvement renovation is deemed necessary or not.
• The interest rate on healthier home renovation loans and loans for energy improvements and climate adaptation is currently 2.79% (variable nominal interest rate).  

Example of a healthier home renovation loan (100%):
Total credit amount: DKK 500,000; term: 10 years; current variable annual interest rate: 2.82%; monthly payment: DKK 4,826; total cost of credit: DKK 79,119; total amount payable: DKK 579,119; annual percentage rate (APR): 3.0%. (This excludes mandatory fire insurance. If the loan amount exceeds DKK 250,000, a mortgage against the property will be established by the bank as security.)