Home energy loan

Dragsholm Sparekasse lends private customers money to improve their home’s energy efficiency. The eligible examples include new windows, insulation, heat pumps, solar panels and ground-source heating. You repay the borrowed money with interest and the applicable loan costs.

The published nominal annual interest rate is 2.99%; the annual debtor rate, which includes interest compounding, is 3.02%. Interest and any commission are added quarterly. The bank’s example for borrowing DKK 250,000 over 15 years has an annual percentage rate (APR) before tax, including security costs, of 3.53%, with a DKK 258,250 mortgage instrument (ejerpantebrev), which secures the bank’s claim against the property. These are example calculation inputs.

The indicative establishment commission is 0.99%, with a minimum fee of DKK 1,000. The published security costs are a variable registration tax of 1.25%, rounded up to the next DKK 100, a fixed registration fee of DKK 1,825 and DKK 750 for preparing the mortgage instrument. Establishment costs depend on the individual case. The housing fee schedule lists DKK 750 per mortgage loan or mortgage instrument for full or partial repayment; that fee applies to the named service.

The interest rate is variable. External circumstances beyond the bank’s control can cause an increase without the usual notice period. Increases for business, market or legal reasons normally require one month’s notice. A six-month notice period applies instead if, when taken out, the loan has a term longer than 10 years, principal of at least DKK 100,000, security in an owner-occupied home, holiday home or agricultural property in Denmark, falls within mortgage-loan lending limits and can be used by the bank to secure financing through covered bonds. For these qualifying loans, an external increase still need not have a notice period, but cannot exceed what the external change justifies.

The general terms nevertheless require written or electronic notification of loan interest changes by the preceding day, including any change to the size, number or frequency of future payments. For loans financed through covered bonds (SDO loans), notification of a rate change at refinancing comes after it takes effect. Changes based on reference rates appear only on account statements or other statements.

For established housing loans, fee increases or new fees for business, market or legal reasons require three months’ notice; qualifying mortgage-like loans have six months’ notice. The published current interest rate for defaulted loans or unapproved overdrafts is 17.50%.