“Banks do not manage to conclude contracts that have been pre-negotiated at even lower rates. However, this should change during May and the average rate will exceed two percent, “said Jiří Sýkora from Fincentrum & Swiss Life Select.
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Banks knocked down mortgages worth more than 39 billion crowns in April, making April the second most successful month in history Hypoindexu.
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“Mortgages with a longer fixation period are especially expensive,” mortgage specialist Zuzana Kordačová told Práva.
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If the applicant works in travel, hospitality, gastronomy, then the application is rejected at some banks.
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“Some banks want clients to declare that covid has not affected their income. On the other hand, banks are not reluctant to approve exemptions or above-standard conditions for the client for well-balanced mortgages in relation to demonstrable income and property value. And for example in the fields of IT, accounting, “added Kordačová.
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Volumes grew
The mortgage market is breaking one record after another this year. After the best start in the history of the hypoindex, February came even stronger, and March exceeded all expectations with the volume of agreed mortgages amounting to 44.723 billion crowns. Year-on-year, the number of mortgages increased by 5,672 and the volume by CZK 21.335 billion.
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“Compared to the extremely successful March, there is a very slight cooling. 12,416 mortgages in the amount of CZK 39.18 billion were concluded in banks. This decline is the beginning of a trend of reduced interest with regard to rising rates, “explained Sýkora.
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The average amount of a mortgage provided is CZK 3,155,581, and according to the development of real estate prices, this does not even appear to be a significant slowdown.
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Slight cooling and demand on the Internet
The rise in prices is already beginning to be reflected in the demand for mortgage loans on the Internet. For example, the domestic mortgage market Zaloto recorded a month-on-month decline in mortgage demand from a record four billion crowns in March to 3.3 billion crowns in April.
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“The average amount of the requested loan increased by approximately CZK 100,000 compared to March and climbed to CZK 3.1 million. Year-on-year, the average amount of the demanded mortgage even increased by more than half a million crowns. The average length of the requested fixation is still below 5 years, while compared to last year it has been extended by one year, “added Marek Kříž, co-founder of the Zaloto financial market.
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While the record March demand was marked not only by the still very good conditions, but also by the announced increase in prices, when many people tried to catch the lowest possible rates even at the cost of a certain compromise, in April this effect subsided.
The fault may be due to the enormous lack of real estate supply, but also to their significant increase in price. According to Hypoteční banka, the price of real estate increased the most in Q1 in Q1.
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In the long run around 5 percent
“Mortgage rates are now lower than inflation. But it is necessary to have reserves, not to take out a so-called blood mortgage. If we take a mortgage of three million crowns for twenty years, then at a rate of two percent, the installment is 15 thousand crowns. However, the long-term average of mortgage rates is five percent. And at these rates, the installment is already almost 20 thousand crowns, “recalls Vladimír Brůna, head of the B&K Real Estate Investment real estate fund.
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According to him, when mortgage rates rise, apartments will not rise in price as sharply as they do now. “We expect that some may be cheaper by up to thirty percent in the short term,” he said.
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