Banks a building societies last year they borrowed at housing record 540 billion crowns, of which mortgages made 430 billion. The group estimates ČSOB, the market leader in housing finance, of which they are Mortgage bank a ČSOB Stavební spořitelna. So far, the year 2020 was a record with a total of about 315 billion. Last year was also a record year in terms of the number of mortgages sold, as they show data hypoindexu.
ČSOB experts expect strong interest in mortgages as well building savings loans will fall this year, for example due to significantly higher interest rates. Prices real estate according to them, they will continue to grow.
The volume of provided mortgages and loans from building savings last year increased by more than two thirds (69%). “Last year’s extraordinary results are mainly due to very low interest rates and the possibility of advantageous financing, which drove high demand for real estate for own housing and investment,” says Jan Sadil, a member of the ČSOB Board of Directors.
At the beginning of 2021, interest rates on mortgages were around 2%, and in the autumn they began to rise sharply after the Czech National Bank began to raise its interest rates rapidly in response to rising inflation. Mortgages are now normally sold at interest rates above 4% and further growth is expected.
Overview: how much banks and building societies have lent for housing in previous years.
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“The positive news remains that despite rising real estate prices and the amount of the average loan, their maturity, which is around 26 years, is not being extended. Despite the faster rise in interest rates at the end of the year, we do not expect problems of clients awaiting refinancing with repayment, ”says Jiří Feix, Chairman of the Board of Directors of Hypoteční banka and ČSOB Stavební spořitelna.
And what can be expected in 2022? “A record year is over, we expect a return to normal this year. Interest rates, which are between 4% and 5% at the beginning of the year, will play a major role. The small offer of real estate and high energy prices will then lead to a further increase in their prices. However, the growth of interest rates is good news for those interested in savings, which is why we expect higher interest in building savings and new contracts, ”Sadil replies.
Jiří Hovorka
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