The Danish mortgage credit system was established at the end of the 18th century to accommodate the vast demand for housing finance, which arose after the great fire in Copenhagen in 1795. The basic idea was - and still is - that investors’ interests are better safeguarded if investments are based on a pool of mortgages rather than on a single mortgage. The legislative basis was therefore created for the formation of mortgage credit associations.
Realkredit Danmark dates back to 1851, when the first mortgage credit institution, which would later form Kreditforeningen Danmark, was established. Kreditforeningen Danmark, which was established after the legislative amendments in 1970, incorporated four existing mortgage credit institutions.
On 1 January 1993, Kreditforeningen Danmark (KD) was converted into a limited company, Realkredit Danmark A/S. A group structure was established in which Foreningen RealDanmark owned all the shares in RealDanmark Holding A/S, which in turn held all the shares in Realkredit Danmark A/S.
In 1998 collaboration between RD and BG Bank resulted in the creation of a very successful mortgage credit company, BG Kredit A/S. Later that year RD and BG bank formed the holding company RealDanmark A/S, which became the parent company of both RD and BG Bank.
On 1 January 2001, Realkredit Danmark A/S merged with Danske Bank A/S, with Danske Bank A/S as the continuing parent company.
Realkredit Danmark A/S is an independent brand in Danske Bank Group.