If your household income is below the level provided for by the law, the kommune is obliged to grant you a loan for making the deposit called lån til beboerindskud. A list of the cooperatives in which a deposit loan is allowed is available on websites of the kommunes, and is to be found in the Lån til beboerindskud i almene boliger tab.
In order to obtain a deposit loan it is necessary to:
- rent a social apartment with a kitchen;
- rent an apartment in a builiding raised after April 01st, 1964;
- receive a specified income defined on a yearly basis. In 2017 the maximum level is DKK 236.452 (in 2016 - DKK 231.815) if you rent an apartment. In the case of a family with children, the income level rises by DKK 41.400 DKK (40.500 DKK in 2016) for each child, up to four children. If you rent a separate room with access to kitchen and bathroom facilities, the income maximum level in 2017 is DKK 160.159 (157.021 DKK in 2016) and rises by DKK 41.400 per child (40.500 DKK in 2016), up to four children.
You are entitled to a deposit loan if you are an elderly or a disabled person, a student or a refugee.
It is also possible to grant a deposit loan to young students, who rent social apartments commissioned to use after January 01st, 1997.
A deposit loan for private apartments or in cases of higher income level than that provided for by the law is also possible in exceptional cases such as a difficult family situation of the applicant or the lack of social accomodation in the cooperatives. Each case is investigated by the applicable kommune individually, thus, it is crucial that the renter turns to the relevant kommune. The administration employee will check the renter's income in the first place. Next, the availability of social accomodation will be checked.
The loan is granted to cover the full amount of the deposit.
How to submit the application for a loan?
Go to borger.dk, to the Bolig og flytning/Boligstøtte/Lån til beboerindskud tab and log in using the Nem-ID account.
Your next step will be filling out the application form – enter your personal data and the information regarding the property at issue and your economical situation. Once the form is filled out properly, you will receive the confirmation.
Before you start with the application, prepare:
- rental agreement and the certificate from the cooperative to confirm the rental of the property at issue – the documents shall be attached to the application;
- annual tax settlement;
- paychecks showing wages of the renter, or other documents to confirm the income on the family;
- bank certificate to confirm that the renter owns a bank account, has savings or pays loans;
If you do not know the Danish language, find a translator or another person who will assist you while filling out and submitting the application.
What to do in the case of loan denial?
The kommune has a right to deny the loan for various reasons, e.g., if your accomodation or financial situation is good, or if you have not settled a previous deposit loan yet etc.
In the case of the denial, the renter may appeal against the decision within four weeks from the date of the decision.
The loan is disbursed directly to the cooperative in which the property at issue is rented.
In general, for the first five years, the capital and interest on the loan are not to be repaid. After that time, if you still live in the property at issue, the loan must be repaid within ten years, and if you rent only a room, the loan must be repaid within five years. The interest rate is 4,5% per year.
If you leave the property for which you were granted the loan, the cooperative will return the unused amount of the deposit that has not been used to cover the cost of renovation of the flat.
The remaining amount of the unused deposit must be returned to the kommune.