Mortgages become less accessible

Stricter rules for the provision of mortgage loans have taken effect as of October 1st.

Under the change introduced by the Czech National Bank, mortgage holders should not be allowed to spend more than 45 percent of their monthly income on repayments.

Likewise the overall loan should not exceed 9 times the holder’s annual income.

The new conditions will make mortgages unaccessible to twenty percent of households which met the previous conditions.

The central bank’s restrictions are not legally binding but are generally followed by banks.