Number of risky housing loans issued in 2018 drops, says Danish central bank
Limits on loan-to-value and debt-to-income ratios have seen reduction on risky loans
Policies implemented by the Danish government have helped lower the number of “risky mortgage loans” issued in 2018 but not prohibited them completely, the country’s central bank says.
On January 1, 2018, the Danish Ministry of Industry, Business and Financial Affairs implemented new guidelines that limit households’ access to certain mortgage loans if their loan-to-value ratio is above 60% and their debt-to-income ratio is more than four times their annual income.
“The guidelines have
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