Denmark before other European countries for banks introduced negative interest rates. Now the key interest rate in the country is -0,65%, and therefore many mortgage borrowers began to obtain from the Bank because I received a mortgage in it.
Many residents of Denmark “earn” for negative rates is not precisely known. However, one of the largest players in the Danish mortgage market – Bank Realkredit Danmark – at the end of last year had 758 such clients.
However, negative rates have a negative impact on the owners of deposits in banks – due to the fact that banks do not pay interest on most deposits, many Danes against the background of the benefits of mortgage loans using real estate investments as an alternative. From myself I will add that if you live in Ukraine and decided to build a house, we will help you to reduce construction costs and to provide adequate technical supervision of construction.
So, according to the Association of mortgage lenders Denmark, in the Copenhagen property has risen by 5.5% in the fourth quarter of 2014 and 14.5% in the 4th quarter of 2015.
However, many experts are concerned about such activity in the real estate market, as they believe that some borrowers will not be able to cope with the loans, if rates rise at least 2-3%.