In November, the average mortgage rate fell below a record 2%
Attractiveness of mortgages in the Czech Republic continues to grow. Thanks to this, 2020 was the most successful year in history in terms of the total volume of issued mortgages, which exceeded 254 billion Czech crowns. Compared to last year, the growth was almost 40%. This year, banks issued 2,000 more mortgages than last year, and the average loan amount increased by 365,646 CZK to 2,966,150 CZK.
What about the average mortgage rate, according to Fincentrum Hypoindex in December, it fell to 1.96%, while at the beginning of the year it was 2.44%.However, analysts believe that we should not expect steady fall of mortgage rates at the same pace. Moreover, in 2020 mortgage rates will not exceed the record levels of 2016 with a result of 1.77%.But despite this, mortgage rates are still very attractive and there is every reason to believe that in the near future we should not expect any major changes at the mortgage market.
Analysts believe that the growing average mortgage amount indicates that despite the coronacrisis, the demand for real estate in the Czech Republic continues to grow with its average cost. It is worth noting that a significant increase of the volume of issued mortgages is also because of the fact that the Czech National Bank has reduced necessart requirements for obtaining it.For example, to obtain a mortgage, the needed down payment is now reduced to 10% from the previous 20%, and the requirements for the relation of income and mortgage payment have been simplified.The current conditions at the mortgage market are the most favorable in the last few years. That is why today is the best time to invest in real estate.
