Unprecedented interest in mortgage loans continues despite the recent rise of interest rates. According to the research, up to 13% of all inhabitants of the Czech Republic are considering applying for a mortgage loan. The huge interest in mortgages is probably caused by rising interest rates and concerns about higher inflation rates.
Many banks are unable to process such a high number of mortgage applications, therefore the mortgage processing might be prolonged by a period of weeks. Slower approval process of the mortgage application may have a negative effect on the timely fulfillment of obligations arising from the reservation contract, purchase contract, etc. In this situation, it is necessary to take into account the length of mortgage processing and adjust contractual terms. In case of smaller banks, applicants can wait up to a month to assess a mortgage application. Even after that, it can take another few weeks to process the loan documentation. If you prefer to know your timeline and meet all deadlines feel free to contact us.