It might seem that buying a property in the Czech Republic using a mortgage is not the best decision these days. The following reasons may convince you otherwise:
- The possibility to negotiate a discount on the purchase price is beginning to arise. With the change in the market and the weakening of demand, the opportunity for reducing the purchase price is beginning to appear again. A discount on property price has potential to compensate buyers for the higher interest rates and the related interest costs.
- Due to the real estate market's recent development, we can observe a more diverse offer of properties, even in areas where it used to be quite challenging to buy a property with the required parameters during the pandemic. The buyers can thus allow themselves more time to choose the perfect property, which can be a nice bonus to a potential discounted purchase price.
- Higher interest rates won't stay the same for the entire duration of the mortgage. The possibility of negotiating a lower interest rate during the fixation is also not excluded. As soon as the mortgage interest rates drop, it will be possible to enter into negotiations with the lending bank to adjust the interest rate to the level of current market rates. As mentioned above, the discount on the purchase price can be more significant than the interest paid during the higher rate period.
mortgage can be a solution even for buyers who made the purchase using
their own resources. If, for example, you decided to put cash into a
property (due to current high inflation) and the market situation were
to reverse, it is possible to apply for a cash-back mortgage, up to 36
months after the purchase of the property. The bank will provide you
with a mortgage, and you can use the money from the loan for any purpose
If you are wondering whether it is the right time for you to apply for a mortgage and require advice, do not hesitate to contact us and arrange a free consultation.