The sharp rise in interest rates that we have been experiencing for more than a year has stopped for now. On the interbank money market, interest rates are falling, which means the "price of money" is decreasing. At the same time, the Czech National Bank (CNB) at its August meeting in its new composition did not proceed to increase...
The Czech National Bank ("CNB") Board, headed by Governor Jiri Rusnok, met for the last time. The agenda of the meeting again included the adjustments of monetary policy, specifically the modification of the basic interest rate. It was decided that the rate would be increased from the original 5.75% to 7%. This is an increase in the rate of...
When the buyer decides to apply for a mortgage loan in order to pay the purchase price, he/she must take into account that at least 20% of the property price ( or 10% if he/she is an applicant under the age of 36) will be paid from the applicant's own resources. According to the new legal regulation applicable from...
At the beginning of April, new limits for mortgage loans entered into force. Having regard to the Act No. 6/1993 Coll., On the Czech National Bank (CNB), the CNB is entitled to regulate the parameters for the provision of mortgages. Banks are now obliged to comply with the new limits for DTI, DSTI and LTV parameters when...
At the end of last month, due to the deterioration of Sberbank's CZ liquidity situation, the Czech National Bank decided to revoke its banking license. According to official statements, the situation was caused by a significant deposit withdrawal after the escalation of the Russian-Ukrainian conflict. The decision to revoke the banking license was...
From the point of view of the Czech mortgage market, the year 2021 was a record year, both in the number of provided mortgages and the total volume of provided funds. The main reasons were low interest rates, zero real estate transfer tax, simplified conditions for obtaining a loan and a change in customers' preferences.
The rise in interest rates does not end at the beginning of the new year either. Inflation in the Czech Republic is rising and the mortgage rates are rising with it. The largest Czech banks have increased the rates by 0.5% month-on-month.
In accordance with the newly acquired legislative power, the CNB may set mandatory limits for mortgage lenders. The changes concern DTI, DSTI and LTV will be mandatory from 1 April 2022.
While at the beginning of this year the average interest rate for mortgage loans was below 2%, now the rates are reaching almost 4% threshold. The Czech National Bank has raised basic interest rates several times already, which is also being reflected by banks in the level of mortgage interest rates. A higher interest rate means higher loan...
This is the highest increase done in a single meeting in the last quarter century. The reason for this significant intervention is strong inflationary pressure. In August, inflation in the Czech Republic reached 4.1 percent, while the aim is to return it to the 2 percent limit. According to the governor of the CNB, the reason for the...
