COPENHAGEN, August 11, (WNM) - An economic slump with falling interest rates has hit the Danish housing market. Credit institutions Realkredit Danmark, Totalkredit, Nordea Kredit and Jyske Bank are offering fixed-interest, 30-year mortgage loans at an all-time low interest rate of 0.5 percent.

But now one bank is even paying customers for taking a loan.

Jyske Bank has introduced a ten-year, fixed-rate loan with an interest rate of minus 0.5 percent, the Copenhagen Post reports. 

“It’s another chapter in the history of the mortgage. A few months ago, we would have said that this would not be possible, but we have been surprised time and time again, and this opens up a new opportunity for homeowners,” explained Mikkel Høegh, a housing economist at Jyske Bank, to TV2. 

However, most Danes will find the ten-year format expensive as the monthly payment becomes much higher than it is on 30-year loans. “It is not a loan aimed at people who are going out and buying new housing, but more towards people who want to improve the housing,” added Høegh.