Many changes on the Czech mortgage market are coming this autumn:
i) The Czech National Bank limited max. LTV (loan-to-value ratio) from 100% to 95%. This restriction is valid from 1 October 2016. Currently the buyers need at least 5% as a downpayment.
ii) Since 1 November 2016 there is a change of real estate transfer tax act and the taxpayer will be always the buyer of a property. The amount of tax will remain on the same level which is 4% from a purchase price.
iii) Starting 1 December 2016 the new Act will come into force and it will change the mortgage market quite a lot. There will be some new limits, e.g. a limit of 60% mortgage for rental purposes. On the other hand new Act includes also new benefits for the clients such as lower penalties of early repayment of a mortgage.