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Switzerland, Germany, but also Denmark: more and more banks in Europe offer their customers negative rates for real estate loans. This is the consequence of the monetary policy of the European Central Bank.
In Denmark, it is now possible to borrow over ten years with a rate of less than 0.5%. If a client borrows for a property one hundred thousand euros, he will only have to repay ninety-nine thousand five hundred euros. In other words, the bank pays you to borrow.
A phenomenon that is explained by the decrease in the rent of money. After the crisis of 2008, central banks have, in fact, massively lowered their rates to boost credit. A policy that should last at least until next year.
As a result, money deposits no longer interest banks that have excess liquidity. This penalizes savers.
In Switzerland and Germany, some institutions even apply penalties on deposits of more than five hundred thousand euros.
A situation that disadvantages wealthy clients but also individuals. This low interest rate policy makes it easy to borrow, but it also increases real estate prices , especially in large cities.