The Czechs take out record huge mortgages
During the last half of the year, the average mortgage loan amount has considerably increased, particularly up to the level of 2.8 million CZK in August 2020. According to the similar statistics of the previous year, in August 2019, the average amount of a mortgage loan was 2.32 million CZK.
Interest in mortgages,among other things, grows due to its cheapening, as at the present time, we can see the lowest mortgage rates since November 2017.The conditions for obtaining the mortgage have also been simplified, as in the spring the Czech National Bank reduced the requirement for a down payment from 20% to 10% of the property value.
A stable mortgage market encourages the growth of real estate prices. According to the September research of the consulting company Deloitte, the average apartment prices in Prague and regional centers increased for about 10.4% during the second quarter of 2020.
