It’s not a negative rate mortgage, it’s an Orwellian mortgage

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Some brouhaha around this in Denmark:

Jyske Realkredit is ready with a fixed-rate mortgage with a nominal interest rate of minus 0.5%.

Yes, you read right. You can now get a fixed-rate mortgage with a maturity of up to 10 years, where the nominal interest rate is negative. However, you are not exactly going to make money borrowing. Namely, there must also be paid, among other things, establishment fees and contributions, and there will be a loss of prices.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.