Česká spořitelna is preparing a new mortgage product for first-time home owners that will allow them to borrow 90 percent of the value of the property. The move is being seen as a way to revive demand in mortgages, writes Hospodářské noviny, as the sector has been hit by stricter regulations imposed by the Central Bank. Since October, banks have been restricted to lending up to just 80 percent of the value of a residential property for 85 percent of the total volume a bank provides. Banks are now allowed to lend up to 90 percent of the value of the property on just 15 percent of its total lending volume. Česká spořitelna has decided to use that amount on first time home buyers. No age limit is being placed on such loans, but the total loan amount cannot exceed CZK 5m. HN writes that no other banks have made a similar move so far.
