Americans Seeking Denmark’s Negative Rate Mortgage

Sep 05, 2019

A bank in Denmark that made history last month for offering the world’s first negative interest rate mortgage is getting inquiries from American borrowers eager to obtain the product.

Last month, Jyske Bank began 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. According to Yahoo Finance, the bank received about 90 inquiries from Americans in the weekend after the product was introduced, and is still getting attention from across the Atlantic.

“What I have said to the Americans is that they have to have a Danish property to get such a loan,” said Jyske Bank Housing Economist Mikkel Høegh. “Some of the Americans then asked if I could help them buying a property in Denmark. I can’t with that but we can help them with the funding if they get the house.”

And while American borrowers do not qualify for this Danish mortgage, its intended audience has responded positively.

“The experience has been quite good,” Høegh said, adding that Denmark is undergoing a new wave of mortgage refinancing and that mortgage debt is up in 88 of the country’s 98 municipalities.

About the author

Phil Hall

Link copied

Published

Sep 05, 2019

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Oct

Denver, CO

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026