Negative rate mortgage!
Posted: June 6th, 2019, 10:16 am
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Spet0789 wrote:I doubt this is true. 10 year bund (German government bond) yields are at around -0.3%. So even though this is in DKK it feels low to me. In Switzerland government bond yields are more negative still and they have 10 year mortgage rates in the 1-1.5% area.
ursaminortaur wrote:Jyske Bank, Denmark’s third largest, has begun offering borrowers a 10-year deal at -0.5%, while another Danish bank, Nordea, says it will begin offering 20-year fixed-rate deals at 0% and a 30-year mortgage at 0.5%.
Under its negative mortgage, Jyske said borrowers will make a monthly repayment as usual – but the amount still outstanding will be reduced each month by more than the borrower has paid.
richfool wrote:I would suggest one would want to be very careful before taking out a mortgage, even with a negative interest rate, if it is in a currency other than one's own home currency.
richfool wrote:I would suggest one would want to be very careful before taking out a mortgage, even with a negative interest rate, if it is in a currency other than one's own home currency.
richfool wrote:I would suggest one would want to be very careful before taking out a mortgage, even with a negative interest rate, if it is in a currency other than one's own home currency.