Economics
Negative Mortgages Set Another Milestone in No-Rate World
- Denmark’s Jyske Bank announced a -0.5% offer this month
- Where central banks led, home loans followed in most markets
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The world’s headlong dash to zero or negative interest rates just passed another milestone: Homebuyers in Denmark effectively are being paid to take out 10-year mortgages.
Jyske Bank A/S, Denmark’s third-largest lender, announced in early August a mortgage rate of -0.5%, before fees. Nordea Bank Abp, meanwhile, is offering 30-year mortgages at annual interest of 0.5%, and 20-year loans at zero.