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Danish banks offering "free" mortgages

Comments

  • Registered Users Posts: 11,181 ✭✭✭✭ Geuze


    The Danish mortgage model is different than ours.

    There are fees, the cost to the customer IS NOT zero.

    See here:

    https://www.askaboutmoney.com/threads/the-mortgage-system-in-denmark.178532/


  • Registered Users Posts: 11,181 ✭✭✭✭ Geuze


    jams100 wrote: »

    Where does this end? Are we heading towards deflation?

    We are in deflation now.

    Consumer prices are falling, slowly.

    https://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexnovember2020/


  • Registered Users Posts: 72,910 ✭✭✭✭ Atlantic Dawn


    We really need our laws changed where the current system of you pay feck all over 2 years you are eventually thrown out on your hole. The many are paying over the odds for the few, crooked system where no sensible lender will ever enter the market here again.


  • Registered Users Posts: 11,181 ✭✭✭✭ Geuze


    Note that the politicians want to make it more difficult to repossess.

    So what you want will not happen.

    Society has moved left.


  • Registered Users Posts: 72,910 ✭✭✭✭ Atlantic Dawn


    Geuze wrote: »
    Note that the politicians want to make it more difficult to repossess.

    So what you want will not happen.

    Society has moved left.


    A lot of them have significant skin in the game, they want to keep property prices at peak. A flood on the market of Covid related default properties would ruin a lot of them.


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  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 61,057 Mod ✭✭✭✭ L1011


    The claimed 0.7% fee to the bank in the middle in that AAM posting is probably similar enough to the real margin for Irish mortgage lenders. We already have ~2% for the lowest risk loans here, so taking in that margin and the direct costs that are recharged to Danish borrowers there isn't a huge amount more to push down without massive reforms of loan security.


  • Banned (with Prison Access) Posts: 31 ✭✭✭ Dafterss


    They make money on the bonds behind the mortgage


  • Registered Users Posts: 175 ✭✭ Jambonjunior


    Is it likely at any point that european wide mortgage services will exist?


  • Registered Users Posts: 17,044 ✭✭✭✭ namloc1980


    Is it likely at any point that european wide mortgage services will exist?

    Financial services can be offered across the EU now. However given Ireland's regulatory and legal environment, where it is extremely difficult to collect on mortgages in arrears and where we have a very casual approach to arrears, no European mortgage provider would ever enter the Irish market.


  • Registered Users Posts: 1,395 ✭✭✭ GazzaL


    Geuze wrote: »
    We are in deflation now.

    Consumer prices are falling, slowly.

    https://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexnovember2020/

    That could easily turn the other way this year as shipping costs are adding massively to costs on imports, particularly from the Far East.


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