Negative interest mortgage

[ljean]

The central bank must be charging higher negative rates otherwise i have no idea why any lender would do this.

A Danish bank is offering mortgages at a 0.5% negative interest rate — meaning it is basically paying people to borrow money

Denmark's third-largest bank said this week that customers will now be able to take out a 10-year fixed rate mortgage with an interest rate of -0.5%.

www.businessinsider.com

 

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[WJK]

Kind of scary, uh?

 

[Sandholdt]

According to the bank itself, they still make money on those loans because of fees.
The loan is not meant for actually buying houses as the monthly pay-off is too high for most families, but rather for house improvements.

(I've read some Danish articles about this)

 

[WJK]

According to the bank itself, they still make money on those loans because of fees.
The loan is not meant for actually buying houses as the monthly pay-off is too high for most families, but rather for house improvements.

(I've read some Danish articles about this)

That's not happening in the US due to our banking laws and rules.

 

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[LittleWolfie]

Well,if interest rates are negative, then mathmatically you should be paid to borrow.