ANL 10.66 Increased By ▲ 0.21 (2.01%)
ASC 9.90 Increased By ▲ 0.09 (0.92%)
ASL 11.23 Decreased By ▼ -0.42 (-3.61%)
AVN 70.00 Increased By ▲ 0.64 (0.92%)
BOP 5.94 No Change ▼ 0.00 (0%)
CNERGY 5.22 Increased By ▲ 0.07 (1.36%)
FFL 6.89 Decreased By ▼ -0.06 (-0.86%)
FNEL 6.03 Increased By ▲ 0.05 (0.84%)
GGGL 11.37 Increased By ▲ 0.08 (0.71%)
GGL 15.43 Increased By ▲ 0.30 (1.98%)
GTECH 8.96 Increased By ▲ 0.16 (1.82%)
HUMNL 6.35 Increased By ▲ 0.08 (1.28%)
KEL 2.52 Increased By ▲ 0.03 (1.2%)
KOSM 2.99 Increased By ▲ 0.15 (5.28%)
MLCF 27.10 Decreased By ▼ -0.51 (-1.85%)
PACE 3.05 No Change ▼ 0.00 (0%)
PIBTL 5.99 Increased By ▲ 0.04 (0.67%)
PRL 15.93 Increased By ▲ 0.60 (3.91%)
PTC 7.30 No Change ▼ 0.00 (0%)
SILK 1.37 Increased By ▲ 0.04 (3.01%)
SNGP 26.28 Increased By ▲ 0.47 (1.82%)
TELE 10.50 Increased By ▲ 0.25 (2.44%)
TPL 9.00 Increased By ▲ 0.33 (3.81%)
TPLP 15.76 Increased By ▲ 0.67 (4.44%)
TREET 28.70 Increased By ▲ 0.10 (0.35%)
TRG 77.40 Increased By ▲ 2.70 (3.61%)
UNITY 21.99 Decreased By ▼ -0.20 (-0.9%)
WAVES 13.12 Increased By ▲ 0.07 (0.54%)
WTL 1.51 Increased By ▲ 0.01 (0.67%)
YOUW 4.90 Increased By ▲ 0.09 (1.87%)
BR100 4,197 Decreased By -6.2 (-0.15%)
BR30 14,753 Increased By 199.6 (1.37%)
KSE100 42,320 Decreased By -120.3 (-0.28%)
KSE30 16,057 Decreased By -36.2 (-0.22%)
Business & Finance

Czech mortgages grow to record in 2020 despite pandemic

  • The central bank has been monitoring the mortgage and housing market in recent years as a potential source of inflationary pressures caused by soaring property prices.
  • House prices were 17% overpriced on average, the bank said in November as it warned against risks to both banks and the broader economy.
29 Jan, 2021

PRAGUE: New mortgages in the Czech Republic grew by 34.3% year-on-year in 2020 to a record volume of 217 billion crowns ($10.12 billion), despite the global coronavirus pandemic's impact on lending, data from the Czech National Bank showed on Friday.

The central bank has been monitoring the mortgage and housing market in recent years as a potential source of inflationary pressures caused by soaring property prices.

House prices were 17% overpriced on average, the bank said in November as it warned against risks to both banks and the broader economy.

Low interest rates supported the demand for mortgages, as the central bank has kept its main two-week repo rate at 0.25% since last May after it had slashed it by 200 basis points during the first coronavirus wave in spring.

The bank also eased some of the limits on mortgage lending in April, like the share of the loan to the property price (loan-to-value, LTV) or the maximum share of payments on the clients' income (debt-servicing-to-income, DSTI).

Overall, new and refinanced mortgages rose by 39.6% year-on-year to 266 billion crowns, the data showed, while household loans added just 0.8% to 264.5 billion crowns.

Comments

Comments are closed.