Brexit gives Danes new record cheap home loans

With Brexit having created instability on the global financial markets, there has never been a better time to take out a home loan in Denmark.

Brexit gives Danes new record cheap home loans
Photo: Mathias Løvgreen Bojesen/Scanpix
Interest rates on Danish home loans have dropped to a new all-time low, Nordea Kredit said in a press release on Monday. 
The bank said that its ‘Kort Rente’ loan has dropped to -0.31 percent interest, the lowest it has ever been. 
“Interest rates have once again been set at such a low level that traditional economics textbooks fall short,” Nordea economist Lise Nytoft Bergman said.
Despite the willingness of investors to pay Danish homebuyers to borrow money, the record low rates do not mean that borrowers will score a profit.
Nordea Kredit said that a loan of one million kroner would result in an income of 258 kroner per month, while the bank requires an 875 kroner monthly fee. After taxes, the loan fees would cost 409 kroner per month. 
The previous record for low interest rates was -0.21 percent, Nordea said. The new -0.31 percent rate will be in effect for the remainder of the year. 
Danish interest rates are determined by the supply and demand of the bond market. According to the Association of Danish Mortgage Banks (Realkreditrådet), “this is unique by international standards and doesn’t form part of the mortgage system of any other country in the world.”
The Association of Danish Mortgage Banks has a short film that explains Denmark’s mortgage system that can be viewed here

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Copenhagen nature area to be developed as city approves land sale

A part of the Amager Fælled nature area has lost its reserve status and can now be sold to investors, after a majority in the city's municipal council voted in favour of development on Thursday.

Copenhagen nature area to be developed as city approves land sale
Amager Fælled. File photo: Asger Ladefoged/Ritzau Scanpix

The 219,000 square-kilometre area, known as Lærkesletten, can be sold to developers who wish to build homes on the land, broadcaster TV2 reported.

The sale raises money needed by the city to pay for the new Metro lines, which opened last year, and was part of a political deal agreed in 2017.

City councillors from the Social Democrats, Social Liberals, Liberals, Conservatives, Danish People's Party and two independents voted in favour, while Red-Green Alliance, Alternative and Independent Green parties and one independent opposed.

Located on the southern edge of the natural area on island Amager, the area is frequently used by people from the city for cycling, running and walking.

“We have seen that nature and the environment are at the centre of the public’s perception of what’s important. They want real wild nature in Denmark,” Gorm Anker Gunnarsen, who represents the Red-Green Alliance on the city council, told news agency Ritzau.

An Epinion survey this week showed that 76 percent of people who live in Copenhagen are either partly or completely against development of the area.

Gunnarsen told Ritzau he still believes there is a chance of preserving the nature zone.

“We have the authority to withdraw a building permit in special circumstances,” he said.

An advisory public vote could on the matter provide the basis for this, he argued.

“This case will not then just rest on which party you are with, but also on your view of the individual case,” he said.

READ ALSO: Copenhagen natural area Amager Fælled gets new development plan