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In Finland we apparently used to have mortgages that were just Euribor + bank margin, meaning that if the Euribor rate went enough into the negative, the bank w
by Hamuko 6y ago
In Finland we apparently used to have mortgages that were just Euribor + bank margin, meaning that if the Euribor rate went enough into the negative, the bank would be paying you interest.
These days mortgages are capped though. My mortgage rate is MAX(Euribor 12m, 0%) + 0.5%. Unsurprisingly I have never paid more than 0.5% interest.
- ZephyrBlu 6y ago0.5% interest is insanely cheap.
- tonyedgecombe 6y agoBut the houses aren't.
- ZephyrBlu 6y ago0.5% interest makes houses cheap in relative terms. You get a lot of leverage for basically nothing.
- tonyedgecombe 6y agoI don't know about Finland but where I am house prices have gone up as interest rates have gone down.
- sharpneli 6y agoYeah. It’s only fair as the interest on accounts is at 0% in Finland. If they would bring negative interest to normal acocounts they’d likely have to do the same with mortgages. Bringing it to euribor + margin.