In accordance with the newly acquired legislative power, the CNB may set mandatory limits for mortgage lenders. The changes concern DTI, DSTI and LTV will be mandatory from 1 April 2022.
The DTI (debt-to-income) indicator expresses the total amount of debt expressed in multiples of the applicant's net annual income.
The DSTI (debt service-to-income) indicator expresses the total amount of monthly debt payments to the total amount of the applicant's net monthly income.
The LTV (loan-to-value) indicator represents the ratio of the loan amount and the value of the purchased property.
The new indicators are set differently for the two groups of applicants. The age of the applicant will be decisive, while more favorable conditions will apply for applicants under the age of 36.
The following limits will apply to applicants over the age of 36:
- DTI at 8.5
- DSTI at 45%
- LTV up to 80%
For applicants under the age of 36, the limits will be as follows:
- DTI at 9.5
- DSTI at 50%
- LTV up to 90%
Therefore, if you, as applicants, exceed the age of 36 after 1st April 2022 you will be subject to stricter loan conditions and banks will be able to provide you with a lower mortgage loan than they could provide you nowadays.