Skip to main content

Americans Seeking Denmark’s Negative Rate Mortgage

Phil Hall
Sep 05, 2019
Photo credit: Getty Images/A-Basler

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.

 
Published
Sep 05, 2019
KBRA Assigns Preliminary Ratings To SEMT 2021-6

Pool Of 497 First-Lien Loans Combined Have A Principal Balance Of Nearly $449M

Industry News
Sep 16, 2021
Fugo Appoints Bahlman As VP, Client Relations & Sales

Brings 19 Years of Experience To Texas-Based Back-Office Support Company

Industry News
Sep 16, 2021
Envoy Mortgage Expands To Atlanta

Envoy Mortgage lender expanded its Southeast operations to Atlanta, GA.

Industry News
Sep 15, 2021
FHFA Suspends Controversial PSPA Amendments

Today, the FHFA will be suspending controversial provisions added to the Preferred Stock Purchase Agreement (PSPA) on January 14, 2021.

Industry News
Sep 15, 2021
Covius Holdings To Acquire Nationwide Title Clearing

All 670 NTC Employees, Including Senior Management, Will Join Covius

Industry News
Sep 14, 2021
MBA Appoints AVP Of Diversity, Equity, & Inclusion

Promotes Amber Lawrence From Position As Associate Director Of Career Development Programs

Industry News
Sep 14, 2021