(KGTV) - Is a Danish bank really now offering the world's first negative interest rate mortgage?
Yes.
Jyske Bank has begun offering a 10-year mortgage at -0.5%
Borrowers will make a monthly repayment as usual, but the amount still outstanding will be reduced by more than the borrower has paid.
The bank can do this because it's able to borrow from institutional investors at a negative rate and is passing it along to customers.
Of course, there are still fees and charges, so in the end the borrower will likely end up paying back a little more than they borrowed.
