Danish Couple Gets Paid Interest on Their Mortgage? Find Out How


It may sound like a fairy tale to say banks pay interest for the mortgage loans you had taken. But that is happening and a Dutch household will be soon receiving interest from the bank for the mortgage loan they had taken.

Call it a sweet effect of negative interest rates in many countries including Denmark, the “privilege” to the Danish household follows a ruling by Netherlands’ consumer financial products watchdog, Kifid.

Favouring a bunch of mortgage holders, the watchdog pulled up the bank Achmea NV for delaying variable interest rates as promised, reports New Corp.

It said the bank should have paid the mortgage holders 0.3 percent interest when the Swiss Libor fell below minus one percent in January 2015. Instead, Achmea left the customers in the lurch without paying anything.

The watchdog ordered Achmea to pay up the missed interest at $1,455.12 in travel and legal costs, retrospectively.

Achmea spokesman Stefan Kloet clarified that Achmea “has taken notice of the decision by Kifid.”

Similarly, Hans Peter Christensen had some good news in his recent mortgage statement. He found that his quarterly interest payment has turned negative at 249 Danish kroner.

“My parents said I should frame it, to prove the coming generations that this ever happened,” said Christensen, a 35-year-old financial consultant.

For his loan taken a decade ago, the bank paid him the equivalent of $38 in interest for the whole quarter, reports The Wall Street Journal. As of Dec. 31, his mortgage rate stood negative 0.0562 percent.

Christensen, the financial consultant, bought his home outside Aalborg for $261,000 in 2005 and renegotiated the rates several times as the rates dropped. His interest rate went below zero in last September.

Negative interest rates are akin to charging customers for holding their cash. One offshoot of it is a boom in real-estate.

Denmark entered the negative monetary policy in 2012. With most Danish banks no longer paying interest on saving accounts Christensen said many Danes are turning to property investments as a lucrative alternative.

To Top