You haven’t find a suitable property yet? Are you concerned of worse mortgage terms? No problem - arrange the mortgage now and you will find the property later.
July 2018 /
Mortgage terms are going to be tightened again in October 2018.
As in the middle of last year, the CNB has begun an extensive mortgage regulation focused on making 100% mortgage less affordable. In October 2017 they were banned completely. From April 2018, only 90% of the mortgage can be earned. Since October of this year, another tightening is planned, which will consist of the fact that the maximum amount of all client loans incl. the mortgage cannot exceed 9 net annual income of the client and at the same time the share of all monthly debts repayments cannot exceed 45% of client´s net monthly income.
Considering, for example, your net monthly income of 25,000 CZK and you have no existing obligations being under 40 years old, you will be able to get a mortgage of up to CZK 2.5 million with a maximum maturity of 30 years. This is assumed at the current record low interest rates. For example, if rates are increased to 4%, the maximum loan amount will be CZK 2 million only. If you are over 40 years old, the amount of credit available will also fall rapidly.
Get a mortgage now, under better conditions. You can look for the property for another 12 months.
Take advantage of the opportunity to get a mortgage at current friendlier terms. We are still able to arrange a mortgage for the full purchase price. If you are not able to buy a property during the summer we can arrange so-called pre-mortgage under current moderate conditions with the possibility to disburse it in 12 months or more. You can than find the property to buy later.
If you are interested in this financing option, contact us!