Get Paid to Take a Mortgage!




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ORIGINAL POST

Posted by Ed 37 days ago
All you have to do is move to Denmark....
 
  • A Danish bank is offering mortgages at a 0.5% negative interest rate — meaning it is basically paying people to borrow money
 
  • A bank in Denmark is offering borrowers the chance to take out mortgages at a negative interest rate, effectively meaning that it will pay customers to borrow money.
 
  • Jyske Bank, Denmark’s third-largest bank, said this week that customers would now be able to take out a 10-year fixed-rate mortgage with an interest rate of -0.5%.
 
  • “A few months ago, we would have said that this would not be possible, but we have been surprised time and time again,” the Jyske Bank housing economist Mikkel Høegh said.
 
  • Offering loans at a negative rate may seem counterintuitive. But some banks are content to take a guaranteed small loss rather than risk bigger losses.
 
Jyske Bank, Denmark’s third-largest bank, said this week that customers would now be able to take out a 10-year fixed-rate mortgage with an interest rate of -0.5%, meaning customers will pay back less than the amount they borrowed.
 

“It’s an uncomfortable thought that there are investors who are willing to lend money for 30 years and get just 0.5% in return,” Bergmann said.

“It shows how scared investors are of the current situation in the financial markets, and that they expect it to take a very long time before things improve.”

 
 
https://www.businessinsider.my/danish-bank-offers-mortgages-at-negative-interest-rates-2019-8/ 
 

COMMENTS

Ed 37 days ago
Ed 37 days ago
Hmmm... I wonder if it is possible to get an interest only mortgage? 
 
And can you get a 0 money down option? 

Ed 37 days ago
And this from the bank's website:
 
 

"In practical terms, it will be experienced that the mortgage loan repayment will be greater than it would be with a positive interest rate. The negative interest rate will act as a 'subsidy' to the repayment. And the repayment portion will become smaller and smaller as the debt is reduced," explains Jyske Bank housing economist Mikkel Høegh.

How is that possible?

"Yes, I hardly understand it either. In fact, I said it can't be said. But we have figured out the extremes well, and it can be very possible to have a bond rate of minus," explains Jyske Bank's home economist.

 
https://www.jyskebank.dk/bolig/nyheder/realkredit-med-negativ-rente 
 
 

Ed 27 days ago
Here's an interview with a bank official - 'we will pay you to take a mortgage'


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