Negative Interest Rates in Europe! Really?

Post Category : Lending


A headline on the Business Insider article said it all: “The Era of Negative Interest Rates Has Begun.”

The article went on to describe how the European Central Bank is starting to charge banks that park their funds at the ECB a -0.1 percent interest rate. The last time I checked, my mattress wasn’t even that cruel.

We may look at that, note that it’s happening in Europe and ask, “Why should I care?” Later in the day I read another article that said many US bank account holders are paying a de facto negative interest rate for the privilege of depositing their funds.

When you factor in all the fees that have crept into the US banking system, it’s reality. In fact, I think the guys at the airlines who’ve been scheming the baggage fees, carry-on fees, snack fees, and early boarding fees etc. are, in fact, jealous at what the bankers have been able to pull off.

Keep the money working

As ugly as the negative interest rate is, I think an even worse problem caused the ECB to come up with this onerous idea: European banks aren’t making loans. Officials at the ECB hope that the negative interest rate will prompt banks to put that money out in
circulation in the form of loans and get the European economy moving.

That’s one of the things I’m proud of here at Evoque Lending: We make loans that directly benefit not only the folks who borrow and our investors, but the bigger economy. We keep commerce moving when conventional banks refuse to participate.

And when you invest with us, you’re part of that as well. Of course, there are several more tangible benefits of investing in a first trust deed. I probably don’t need to tell you that negative interest rates aren’t something you’ll find here. We beat that by a country mile.

Our investors earn double-digit returns on their funds. This is generally in the 10-13 percent range today. But as a savvy investor, you’ve probably seen other offers that talk about good returns, but they come with risks you’re not willing to take.

California real estate loans

First trust deeds on excellent real estate in Los Angeles, Orange County, San Francisco and other California locations are our specialty. We start with property in the most desirable US state and then insist that our investors get 40 percent or more in protective
equity. This gives you the peace of mind that you want.

We also understand that no two investors have the same needs. When you invest with Evoque Lending you can invest your funds for the short term or for the longer term. This gives you the flexibility you need as the requirements of your lifestyle change over time.

Of course, I don’t expect you to pull out your checkbook after reading this blog, but I do hope that I’ve piqued your curiosity enough to give us a call. We would appreciate the opportunity to go over the details of these investments in depth so you can truly judge for yourself if it’s time to invest in first trust deeds.