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The mortgage boom is over: loans to buy a home in the Czech Republic have become less frequent.

Mortgage lending in developed countries has always been a stimulus for the economy and especially for the construction industry. Lack of such lending can create a situation where people stop buying apartments.

In a steadily growing economy, mortgage lending is beneficial to banks and individuals, as it opens up the possibility of purchasing housing without the full amount of the transaction. Under the new conditions, the mortgage regime requires the borrower to have up to 40% of personal funds to apply for a mortgage loan.

Rising real estate prices in the Czech Republic remain high and today lingered at 8% annual value added. Residents' incomes are growing more slowly. The situation is that most Czechs lose the opportunity to pay for such an expensive deal as buying a home in the Czech Republic. Banks issue mortgages to those applicants who prove their financial ability to repay the money received on credit. Now the buyer must have an income at which he can repay the debt to the bank within 9 years. And in the current economic situation, Czechs need to work an average of 14 years to repay credit debt.

In short, mortgages have become inaccessible to most potential real estate buyers living and working in the Czech Republic for an average salary. But mortgage lending remains one of the main ways to finance the purchase of apartments. Banks have even lowered the interest rate for the use of money to 2.9% per year to slow down the process of giving up mortgages to Czechs. Foreigners still have the right and opportunity to take loans from Czech banks on the security of purchased real estate, ie mortgages. Bank loans in the Czech Republic are cheap, so purchased square meters of debt can be profitably leased. Revenue exceeds the cost of repaying loans. It turns out that buying a home in the Czech Republic with a mortgage remains a profitable way to buy real estate.

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