Skip to main content

World’s First Negative Interest Rate Mortgage is Launched

Phil Hall
Aug 14, 2019
Photo credit: Getty Images/tang90246

A bank in Denmark has made financial services industry history as the first lender to offer its customers a negative interest rate mortgage.
 
According to a report in The Guardian, Jyske Bank is offering a 10-year home loan that charges its borrowers -0.5 percent a year. With this product, borrowers make their usual monthly payments, but the amount that is outstanding is reduced each month by more than the borrower paid.
 
“We don’t give you money directly in your hand, but every month your debt is reduced by more than the amount you pay,” said Jyske’s housing economist, Mikkel Høegh.
 
No other bank has announced plans to follow Jyske’s lead, but another bank in Denmark, Nordea, is coming as close as possible with plans for a 20-year fixed-rate mortgage at zero percent and a 30-year mortgage at 0.5 percent.

 
Published
Aug 14, 2019
Fannie Mae Introduces Spanish-Language Homebuyer Education Program

The new platform, HomeView en Español, aims to bridge language barriers hindering Hispanic-Americans from purchasing homes..

Sep 29, 2023
Layoffs At Better.com

After a rocky market debut, Better.com has laid off staff.

Sep 25, 2023
CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Sep 19, 2023
Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Sep 18, 2023
FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Sep 11, 2023
Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Sep 11, 2023