The Volume of Mortgages Issued is at a Record High
In June 2021, Czech banks issued a record number of mortgages with a volume of 44.5 billion Czech crowns. The total volume for the first half of 2021 was a record 224 billion Czech crowns. Despite a 7 percentage point increase in the interest rate, the average mortgage rate was 2.13%. According to analyst's estimates, this is a very good indicator for investors, considering that in January 2019 mortgages were issued at an average of 3% per year.
The slight increase in interest rates has not dampened investor interest in real estate. There were 14 069 mortgage applications in June 2021, 1 085 more than in May. Compared to last year, there was an increase of 6 448 applications submitted. The Hypoindex portal reports that March 2021 was the most successful month over the tracking period in terms of mortgage applications issued - 14 401. The second most successful month was October 2016, when 14 386 mortgages were issued, with June this year being the third.
Over the past 12 months, not only has the number of mortgages issued increased, but the average value of mortgages issued has also increased. In June 2021, the average amount of mortgages issued in the Czech Republic was 3 161 080 Czech crowns, which is 400 000 Czech crowns more than last year. This is primarily due to the rapid growth in property prices. It is also worth noting that the upward trend in prices on the Czech real estate market continues. Analysts believe that we should expect a slight increase in the average interest rate on mortgages in the near future. In this respect, those who wish to buy an apartment should not postpone this decision, as favourable conditions are currently created for the purchase of real estate.
| 1st semester of the year | Number of mortgages | Volume in billions of CZK |
| 2021 | 72 198 | 223,786 |
| 2020 | 41 545 | 109,554 |
| 2019 | 36 874 | 83,597 |
| 2018 | 49 061 | 104,72 |
| 2017 | 58 177 | 118,553 |
| 2016 | 55 266 | 106,705 |
| 2015 | 50 962 | 90,685 |
