The actual interest rate is -0.75%. If they are offering 0% mortgages, the bank is taking 0.75%. From your point of view as the buyer. You basically are being

The actual interest rate is -0.75%. If they are offering 0% mortgages, the bank is taking 0.75%. From your point of view as the buyer. You basically are being given an amount of free money to on the books take an amount of debt. The thing about negative rates, it's effectively society is saying 'do anything so long as it's not risky.' even if it doesnt make sense. It makes sense, tons of money is moving more conservative. Boomers are headed into retirement and need to move their money to safety. Except where are they investing it safely? In those bonds that are negative. They are losing money in their investment. There's also the reality that the boomers have not saved enough in their generation. Many of them are expecting underfunded social programs are going to keep them afloat. That's not going to happen. In many places those retired cant make ends meet and therefore you get silver crime. https://www.telegraph.co.uk/news/2017/11/20/poverty-ageing-japanese-population-fuelling-silver-crime-wave/ https://www.telegraph.co.uk/news/2017/11/20/poverty-ageing-j... So the boomers will raise the money to retire by inflating housing values and the younger generations buy this debt theoretically when they move into those bigger homes. That's not how it will work. It will inevitable result in exactly the same interest rates and inflation like the 70s and 80s during the WW1 boomers.