Czech National Bank recommendations for mortgages.
June 2018 /
The CNB will tighten mortgage rules. It adds 2 new income requirements. The banks will then re-examine whether the amount borrowed will not exceed nine times the client's net annual earnings. Additionally, the applicant will not be able to take loans where the instalment exceeds 45% of his monthly net salary. The central bank also mentions the rapidly rising prices of flats. According to her estimates, real estate in the Czech Republic is currently overvalued by 14%. And that corresponds to the growing time that people need to save on their own homes. Last year it increased by half a year. The flat 3 + 1 takes in average 8 years and 7 months to accumulate enough income, but in Prague it takes 16 years.