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Danish citizens can now contract mortgages at 0% interest or even at negative rates . And it is not about isolated cases or for certain clients, as had happened in the past, but it is part of the mortgage offer of some of the country's main banking entities.
The most striking is that of Jyske Bank A / S, a bank that presents the possibility of contracting a 10-year mortgage loan at an interest of -0.5% . That is, the saver, instead of paying the interest produced by that credit, will charge them. It is just the opposite of what, in principle, says banking theory, whose benefit lies precisely in lending money and charging for it, and is the result of the current ultaexpansive monetary policy of central banks. The 10-year Danish bond, for example, is trading at -0.53%.
For its part, Nordea Bank proposes two other options with a slightly higher interest but, in return, offers the possibility of paying the credit in a longer period of time. On the one hand, it markets a 20-year loan at a fixed term of 0%. And on the other, a mortgage with an interest of 0.5% with a 30-year maturity.
" It has never been cheaper to borrow and I hope this scenario will help raise housing prices, " said Lise Nytoft Bergmann, chief analyst at the Nordea housing finance unit in Denmark, as Bloomberg collects. The development is "almost disturbing," he added, because there are investors who are willing to " lend money for 30 years and get only 0.5% in return ." He also stressed that this event is only a reflection of "how scared investors are about the current situation in the financial markets, to the point that they are willing to let a long period of time pass before things get better."
Paying interest on a mortgage is not something that has only occurred in Denmark, since other countries such as Sweden or Switzerland have similar situations. However, in the Danish case there seems to be competition between banks for not charging or paying interest.
In Spain there is no precedent for this situation and it seems very complicated to reach such extremes. However, with Euribor at a minimum and given the firm intention of central banks to maintain lax monetary conditions, many analysts say that banks will be more aggressive in their offers to try to capture a greater number of customers. And that means they will offer very small interests.
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