A bank in Denmark is offering 20-year mortgages with zero fixed interest rates, Bloomberg reports.
Nordea Bank’s Danish customers can get such loans, which have a lower coupon than the 10-year government bond issued by the US Treasury.
In the current global context, Denmark differs in that it has maintained a negative monetary policy interest rate more than any other country.
In 2012, the Central Bank of Denmark decided to cut the reference interest rate to below zero and since then Danish customers have enjoyed a steady decline in borrowing costs.
Even more, Danske Bank A/S, the largest bank in Denmark, is considering the possibility of issuing 20-year interest-free bonds.