Mortgages in cooperative housing property

​Since 2005, members of cooperative housing societies have been able to take out loans secured on their share of the housing society property. 

If you want to take out a mortgage on your cooperative housing unit in connection with purchase and home equity financing you can use the recommended procedures compiled by the Danish Bankers Association, the Danish Association of Private Co-operative Housing (ABF) and the former National Agency for Enterprise and Construction. The procedures are:

 
The procedures set out a typical mortgaging process for a cooperative housing society unit, with a step-by-step description of the actions to be taken and who is responsible. It suggests a division of responsibilities between the parties, and naturally there may be situations in which the parties decide not to follow the proposed procedure.
 
The guidelines were revised in February 2012.
 

Loan purpose

There are no restrictions on the purposes to which the borrowed funds can be put, which means that loans can freely be taken out to finance home improvements or other uses totally unrelated to the housing society unit.
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