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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 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.

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0.5% interest is insanely cheap.

But the houses aren't.

0.5% interest makes houses cheap in relative terms. You get a lot of leverage for basically nothing.

I don't know about Finland but where I am house prices have gone up as interest rates have gone down.

Yeah. 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.

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