The Czech National Bank has worried residential developers with its decision to clamp down, hard, on mortgage loans. Its leading bankers have long been concerned at the rapid growth in prices of housing prices and has now declared that it will continue any monthly payments that exceed 40 percent of the client’s salary to be risky. The maximum safe volume of the total mortgage loan will only be considered safe if it is less than eight times the borrower’s annual salary. These measures will not apply to the refinancing of existing loans. Media sources are estimating that the new provisions could apply to as many as one-third of all current customers.
