The Czech National Bank hasn´t increased the prime rate, mortgages for younger people should be more affordable


In the last the Czech National Bank ("CNB") meeting on 28th of March it was decided not to increase the prime rate. In the first quater of 2019 the production of mortgages for housing has decreased by 32% . The main reason of this huge decrease is the current availability to get a mortgage since the new CNB DTI and DSTI restrictions. Due to this decision the interest rates of banks are still decreasing.

There is an amendment to the Act on the Czech National Bank in the process which could help younger people to get a mortgage. People under 36 years could get better conditions when getting a mortgage. For example they will be able to apply for a 100% LTV mortgage with 50% DSTI parameter or they will be able to get the mortgage despite their lower net income. If this novelty will be accepted it will apply only to the people applying for a mortgage only for a housing purpose.