boligopsparingslån

A boligopsparingslån, often translated as a housing savings loan or a savings-linked mortgage, is a type of loan product available in some European countries, particularly Denmark. It is designed to help individuals save up for a down payment on a property while simultaneously securing a loan for the future purchase.

The core principle of a boligopsparingslån involves two simultaneous components. Firstly, the borrower makes regular payments into a savings account. These savings accrue interest over a predetermined period. Secondly, a loan is pre-approved or established at the beginning of the savings period, with the amount typically linked to the expected future property price. The interest rate on the savings portion is usually set at a favorable level, sometimes higher than standard savings accounts, to incentivize long-term saving. The loan portion's interest rate is also agreed upon upfront.

At the end of the savings term, the accumulated savings, including interest, are used to reduce the principal amount of the loan. This means the borrower ends up with a smaller mortgage to repay than if they had simply taken out a loan without a prior savings component. This structure can offer a degree of financial discipline and predictability for prospective homeowners, helping them build equity and reduce their overall borrowing costs. These loans are often subject to specific regulations and may have different names and structures depending on the financial institution and country.