Mortgage prices will rise, but he will not die

The mortgage market in the Czech Republic has been growing for several years. But now rates are rising for years. As for the trend of mortgage lending, some factors speak in favor of further growth, others against.

The history of mortgages in the Czech Republic began in 1995, when the Czech National Bank granted the first license to issue mortgage bonds. For many people, the mortgage was largely unknown, in addition to the years it was around 15 percent and after two years, during the so-called balkov crisis, even the short-term increased to twenty percent. It is therefore not surprising that by the end of 2000 not even 30 billion K mortgages had been provided.

Even the introduction of a new contribution to the years of mortgages did not help the situation. It is interesting that even in times of relatively high inflation, we did not take the path of foreign currency mortgages, such as in Poland, Russia and other countries, where it was possible to obtain a mortgage with an interesting year only in foreign currency.

After 2000, however, the situation changed. The persistent decline in inflation, the strengthening of the koruna and the decline in annual rates associated with these factors was reflected in a permanent increase in the number of mortgages provided, which continues at the same pace to this day.

The first hundreds of billions were reached in 2003, ie eight years after the mortgage was relaunched. The second hundred were closed in 2005, after twenty-one months, and this year was added in another tinteen months, and last but not least, a quarter of hundreds of billions of dollars were sold this June, after nine months. The number of mortgages provided amounted to 300,000 with an average sweat of 1.7 clients per contract. The development is shown on the graph:

Source: gives MMR

In recent years, rates have gradually reached one of the lowest levels in Europe. The impact of the aid has been reduced due to lower rates; The only significant support left to clients is the possibility of paying income tax one year after the tax.

What will dl?
For the further growth of mortgages speak first of all the fact of deregulation of rent, which increases the attractiveness of their own housing for another group of citizens, mortgage payments for them may mean less payment of rent. A sharp increase in average wages, which is currently accompanied by a growing phase of the economy, as well as a number of creditworthy clients.

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