Jyske Bank, Denmark's third-largest bank, said this week that customers would now be able to take out a 10-year fixed-rate mortgage with an interest rate of -0.5%, meaning customers will pay back less than the amount they borrowed. "It's another chapter in the history of the mortgage," the Jyske Bank housing economist Mikkel Høegh told Danish TV, according to the news website Copenhagen Post. "A few months ago, we would have said that this would not be possible, but we have been surprised time and time again, and this opens up a new opportunity for homeowners." Jyske Bank's negative rate is the latest in a series of extremely low interest offers from banks to Danish homeowners. Nordea Bank, Scandinavia's biggest lender, said it would offer a 20-year fixed-rate mortgage with 0% interest. Some Danish lenders offer 30-year mortgages at a 0.5% rate.
- Business Insider -