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Mortgages increased by a record 90 percent

Mortgages increased by a record 90 percent

“Although this year is not over yet, today it is certain that it will be the most successful year in history in terms of the volume of mortgage loans made,” said Jerry Sukura, an analyst at the company.

According to Sýkora, the 400 billion limit will likely be exceeded at the end of the year. It bases its claim on numbers from previous years, when the last quarter was always one of the strongest. “Despite the decline that has already begun in mortgage interest, the cap is expected to go down, or at least we’ll get very close to that cap,” he added.

Among the indicators of the future development of mortgage rates is the basic interest rate of the Czech National Bank (CNB). At the end of September, the central bank increased sharply by 0.75 percentage points to 1.5 percent. The largest mortgage banks responded immediately, with their bid rates exceeding 3%. With CNB prices rising, average interest rate growth will accelerate in the coming months.

In November, experts expect an increase of another half a percentage point. However, it is possible for an increase of up to 0.75 percentage points. Hence, it is possible for some mortgage rates to rise to six percent.

Customers risk increased premiums after installation ends

According to him, the numbers of mortgages sold this year include a large percentage of customers who were only able to purchase their homes due to low rates and low installments. If prices remain at the current level by the time the stabilization period ends, they can expect an increase in premiums of up to several thousand crowns. In some cases, this may mean significant problems for some, which can lead, for example, to the loss of real estate.

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“For example, for a family with a three-million mortgage loan agreed for 25 years, the premium will increase from the current 13,348 CZK to 17,537 CZK, that is, more than 4,000 CZK per month, if the rate rises to five percent,” Calculated Sakura.