[0x0]

The effective interest seems to be above 0% though. The linked FAQ shows calculations where the total amount paid back is more than the total loan amount. Plus some talk about some kind of exchange rate(?) seems like this could be even riskier than normal?

[nabdab]

The “Exchange rate” is the kurs(Danish) when the loan is for instance at kurs95 that means you only get 95% of the loaned amount. Effectively the investor gets a bigger principal than was actually loaned. Depending on invester pressure the kurs goes up, but It’s typically close at 100, and a lower rate loan is then opened up, since investing in a kurs100+ loan means taking an emidiate hit on the principal owed, which is bad for investors even if interests pay back the gap over time.

And true, even with negative rate this loans kurs plus fixed costs still mean you are still paying the bank more than they are loaning you.

[nybble41]

> Effectively the investor gets a bigger principal than was actually loaned.

This difference between the amount loaned and the amount paid back over the life of the loan is commonly referred to as "interest".

It really feels like they're just playing semantic games here. Any proper comparison of APRs would include both components. A true "negative interest rate mortgage" would be one where the bank pays you to borrow money, with the total amount borrowed being greater than the total amount paid back to the bank.