Negative Mortgage Rates

Denmark’s National Bank

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Date Published April 2015
Primary Author Working Group on Negative Mortgage Rates
Other Authors
Theme Mortgage Products
Country Denmark


Danish interest rates have generally been falling since 2009. In January and February 2015 the Danish central bank, Danmarks Nationalbank, lowered its key policy rate further to the current level of -0.75% as a result of the upward pressure on the Danish krone. The negative interest rate has rubbed off on the interest rates of Danish mortgage loans funded by floating-rate and short-dated mortgage covered bonds, which have also been negative from time to time. Negative interest rates are a most uncommon phenomenon. Negative mortgage rates raise questions with respect to tax treatment and bond structure.

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