The country with the longest history of negative central bank rates is now offering borrowers 20 year loans accompanied by 0% interest rates.
The Danish branch of Helsinki based, Nordea Bank is the first to present this offering while at least two other Scandinavian banks are like to follow suit. Danske Bank, Denmark's most established lender is also considering the concept.
In essence, homeowners would only pay back what they have borrowed though banks may still enforce fees and charges for profit.
The Danish central bank has held one of its benchmark rates at -0.6% for over eight years and this rate has steadily trickled down to retail markets.
Danmarks Nationalbank first cut one of its interest rates below zero in 2012, this was a first in its 200 year history. The bank became a pioneer of sorts, as alluded by its own governor, Lars Rhode.
With a negative rate premise, financial institutions are obligated to pay interest on idle and parked cash at the central bank. This is used as an impetus for banks to approve more business and consumer lending, thus propelling economic growth.
Negative rates have gradually made their way to consumers as Dankse Bank introduced a -0.75% rate for large deposits last fall.
Danish borrowers are now set to experience an even greater impact with the interest free mortgages that became available earlier this week.