Assessment of financing offer 1.58% 20 years

There were reports at the beginning of the year that negative mortgage interest rates already applied in Denmark. Moreover, this also exists in Germany, at least very close to zero. Namely, when subsidies are taken into account, for example when the repayment grant for KFW loans is included in the effective interest rate. The KFW repayment calculator does this, play around with it.

Exactly that seems very unrealistic, but it is currently happening in the opposite direction. It's called negative interest if you hoard too much money.

Sure, but it is LIKELY that no bank will lend money to a private person at negative interest. Then I'll take tens of millions, stash them in the basement, and live off the interest...

I just assume, probably not the only one, that interest rates can't fall much lower anymore. Otherwise, you would almost get money gifted to you for taking out a loan.

Exactly the same thing was probably thought by everyone who took out a mortgage in the last 10 years, and yet interest rates continued to fall. Mr. Schäuble is currently borrowing money and still getting paid interest on top. Nobody would have thought that possible years ago. Why shouldn't that also happen with mortgage interest rates? To put it bluntly, why should a bank pay 1.5% negative interest to the ECB (currently 0.4%) if it can park money with you for free?

Sure, but PROBABLY no bank will lend money to a private person at a negative interest rate. Then I’d take tens of millions, stash it in the basement and live off the interest...

If you have the appropriate collateral and can keep the money safe, why not.

Sure, but a bank will PROBABLY not lend money to a private individual at a negative interest rate. Then I'll take tens of millions, stash them in the basement, and live off the interest...

Money stored in the basement does not generate interest. That is exactly the problem! If someone lends you money at a negative interest rate, they do it only because of the extremely high security that nothing will happen to the deposit. You have to guarantee that. So how do you make money from it?

Money in the basement doesn’t generate any interest. That’s exactly the problem! If someone lends you money with negative interest, they do so only because of the extremely high security that the deposit won’t be harmed. You have to guarantee that. So how do you make money from it?

If my dog sits in front of the basement door, the money is definitely safer than with Schäuble or the ECB