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.
At the beginning of the year, the average mortgage interest rate reached its minimum. The one-year gradual reduction of interest rates ended this spring and rates are starting to rise again. However, their growth is now hampered by competition between banks.
The amendment to the Act on the Czech National Bank ("CNB") was signed by the Czech president at the beginning of June. The CNB will thus acquire the statutory power to adjust the parameters for providing mortgage loans. Until now, the central bank could only issue recommendations which, despite their legal unenforceability, the banking...
Unprecedented interest in mortgage loans continues despite the recent rise of interest rates. According to the research, up to 13% of all inhabitants of the Czech Republic are considering applying for a mortgage loan. The huge interest in mortgages is probably caused by rising interest rates and concerns about higher inflation rates.
At the beginning of the year, there was an unusually great interest in mortgage loans in the Czech Republic. Starting from March 2020, interest rates were sharply falling due to the coronavirus crisis. As this aspect affects mortgage interests of the customers, the applicants had a strong interest in applying for new mortgages and refinancing old...
Previously, closing a mortgage loan would not be possible without personal meetings, signing a number of documents and, in some cases, time-consuming administration. However, given the situation, banks are coming up with the transformation of their services into online platforms. This also applies to mortgage loans. Although it is not yet possible...
Property purchase and mortgage loan can evoke lots of questions for many of us. Having the right answers could mean reducing both the stress and the cost.
