The average mortgage rate in the Czech Republic reached a record - in March of 2016 it fell below 2.0%. At the same time, the prices of the Czech properties have increased: the average cost per square meter has risen up to 60 000 kroons.
Fincentrum analysts believe that mortgage rate will be reduced in the future. Now borrowers with sufficient income are looking for long-term loans to finance 85% of their project cost. And if they are offered a rate of more than1.9%, the bank is considered "bad" It's all about the competition - in the spring banks reduce mortgage rates in hopes of surpassing the competitors.
Analyst Lukas Kovanda (Rolken company) agrees that the probability of further rate cuts is high. This stems from the weakness of monetary conditions both in the Czech Republic and in the Eurozone, and as a result, decrease in the number of issued mortgages. According to Mr. Kovanda, intense competition between Czech banks will result in the next few months the mortgages rates reducing, and the total volume of loans in 2016 will reach a new record.
Based on the materials of radio.cz
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