Banks now in competitive battle for mortgage clients

Banks now in competitive battle for mortgage clients

Published at: 2019-08-21 10:04 | Author: CIJEurope.com
Mortgage rates continue to fall in the Czech Republic, but the trend is failing to stop the decline in the number of loans banks are making. Instead, the size of the average loan in July grew to CZK 2.33m, up from CZK 2.02m in 2017. The average mortgage rate has fallen to 2.68 percent, having broken back into sub-3 percent levels in February. Banks signed agreements with just 6,615 in July, which was 504 fewer than in June, while handing out CZK 15.4bn in loans. Josef Rajdl, Fincentrum's chief economist, told Idnes.cz that it now appears unlikely that rates will rise back above 3 percent anytime soon. He said that the drive to secure a portfolio of long-term, high quality loans is so strong that a competitive war has broken out between them even during the usually slow months of summer. A total of CZK 99bn has been granted in 43,489 mortgages since January, down from the peak year of 2016 when CZK 122bn was lent over the same period.

Similar Stories:

Mortgage loan volume falls 22 percent in 2019
The volume of mortgage loans taken out by Czechs in 2019 fell 17 percent compared to the y  »
Vlad Exim to build apartments next to Vacaresti Natural Park
Vlad Exim, controlled by the Micsunescu family, is planning to develop an 11-floor housing  »
Huge differences in resi prices along Prague's metro stations
Lidove noviny reports that flats on Prague's Old Town Square metro stop cost three ti  »
Svoboda & Williams to Exclusively Mediate the Sale of Lofts in the Belveder Top Residence Building
The Svoboda & Williams real estate agency was appointed as the exclusive selling agent  »
Where do you see your company going over the next two years? Since I became GM of the co   »
Construction has begun on Bispevika, a brownfield project along Oslo’s waterfront that   »
PSN has sold 350,000 sqm of land to the dominant Czech residential developer Central Group   »
Investors from China, Russia and other countries are leading a growing influx of foreign f   »