Danish bank launches negative interest rate mortgage
This is all the more surprising given that inflation in Denmark is running ~1%/year.<p>That means the bank is absorbing a real loss of 1.5%/year on the deal.<p>Meanwhile, the housing market is roaring:<p><a href="https://tradingeconomics.com/denmark/housing-index" rel="nofollow">https://tradingeconomics.com/denmark/housing-index</a><p>It would be one thing to see negative rates in a declining property market and/or in a deflationary environment.<p>However, negative rate mortgages are happening in what looks like a normal economy with low inflation and red-hot housing market.<p>Somebody is very wrong about one or more of the following:<p>- the future direction of the housing market<p>- the future direction of interest rates<p>- the future direction of inflation<p>Edit:<p>Google translate sheds some light. It appears that the Danish equivalent of "points' clouds the picture:<p>> Total repayments before tax DKK 277,392 (on a DKK 250,000 loan) - of which total interest and contributions DKK 8,264 changes in the exchange rate will affect the size of the amount paid out.<p><a href="https://translate.google.com/translate?hl=en&sl=auto&tl=en&u=https%3A%2F%2Fwww.jyskebank.dk%2Fbolig%2Fnyheder%2Frealkredit-med-negativ-rente" rel="nofollow">https://translate.google.com/translate?hl=en&sl=auto&tl=en&u...</a><p>Low, but not negative.