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...
The rules for calculating the penalty for early mortgage repayment are not yet uniform in the Czech banks. However, this situation is to be changed by new amendments to the Consumer Credit Act, which currently lie in the Chamber of Deputies Parliament of the Czech Republic. The aim of both proposals is to unify the rules for calculating...
The Bank Board of the Czech National Bank ("CNB") raised the basic interest rate for the second time this summer, which is now running at 0.75 percent. The level of the basic interest rate also affects the rate of mortgage loans. Mortgages will thus most likely become more expensive in the future.
