Danish homeowners with F3 and F5 variable-rate mortgages will see their interest rates increase starting July 1st. Totalkredit recently completed auctions that determined the new interest rates.

F5 borrowers, who previously enjoyed a rate of minus 0.02 percent, will now face a rate of 2.5 percent. This translates to an increase of up to DKK 1,600 per month for every million borrowed.

F3 borrowers will see their interest rate rise from 1.50 percent to 2.25 percent. Conversely, F1 borrowers will experience a decrease, with their interest rate set at 2.26 percent instead of the previous 3.82 percent.

According to Sune Malthe-Thagaard, chief analyst at Totalkredit, borrowers should adjust their preliminary income assessment on the Skat website to account for the higher interest expenses. This adjustment will impact the 2025 tax year, potentially resulting in more money in their salary.

While the new interest rates take effect on July 1, the impact will not be felt until the installment due at the end of September.