The Czech mortgage market has changed a lot within past months. And, unfortunately some new changes are coming.
New restrictions from Czech National Bank will be effective on October 1, 2018. There will be two new limits for mortgage applicants:
- maximum loan amount will be 9-times of annual net income (DTI ratio); and
- maximum loan instalment cannot exceed 45% of the net monthly income (DSTI ratio).
banks will have to consider more deaply the income of applicants and
household and check these two ratios as well. However, there are few cases where the new limits will not be applied.
In practise it means that you would need to have very good income or higher amount of your own savings that you will use as a deposit for your mortgage.
In these days it is more important than earlier to have a professional mortgage broker who knows the conditions of the Czech market and could help you to reach the best mortgage.