Mortgages In Denmark 0% Interest

[Economy 52,943]

https://www.bnnbloomberg.ca/20-year-mortgages-hit-zero-for-first-time-in-danish-rate-history-1.1298311

 

As interest rates continue to collapse world wide especially in Europe a new milestone has been reached... A Mortgage in Denmark costs 0%

 

The lowest rate available of 0% applies sepecifically to 20 year mortgages while a 30 year mortgage is 0.5%

 

Adjusting for inflation the bank is essentially paying you to borrow money as by the time you pay back your mortgage you pay the bank in real value less than he lent you!

[Delusional 9,221]

Is this good or not? I am not very into economics but I would like to start trying to understand common terms before I become an actual adult 

[weed 79,096]

that's amazing no? no taking advantage of people 

[BenG 19,908]

Probably gonna cause a demand-pull inflation

[gumzy3000 7,926]

Good. Interest is a scam when it comes to buying houses, which in my opinion should be a universal human right. The poorer you are, the more f***ed you  get and the richer you are, the more money you make out of interest. It's sad

[Rio 5,088]

This is pretty decent 👌🏼

[Economy 52,943]

2 hours ago, Rio said:

This is pretty decent 👌🏼

 

2 hours ago, gumzy3000 said:

Good. Interest is a scam when it comes to buying houses, which in my opinion should be a universal human right. The poorer you are, the more f***ed you  get and the richer you are, the more money you make out of interest. It's sad

 

2 hours ago, BenG said:

Probably gonna cause a

3 hours ago, DeIusional said:

Is this good or not? I am not very into economics but I would like to start trying to understand common terms before I become an actual adult 

demand-pull inflation

It's meh... Not the greatest thing. Super cheap credit encourages ppl to take on too much debt and that's largely what caused the housing bubble that popped in 2007 because rates from late 2001 to 2005 were held low for too long and real estate inflated

 

@gumzy3000 when rates are lower home prices simply go up proportionally. It doesnt end up actually making them more affordable for everyone

 

Also it's not about not taking advantage of people. A lot of Bench mark rates from Central Banks who set monetary policy for Private Banks have it set on negative rates for extreme stimulus. In turn bond rates are also in the negative right now in much of Europe so banks essentially get payed to borrow money to lend. That's an unusual situation but that's what negative rates are

 

In essence, they still are making money out of the Danish when they lend for 0%