Mortgage rates continued their slide in Czechia, dropping to 1.89 percent in May. In April, they were at 1.94 percent, according to Fincentrum Hypoindex. In May, 10,831 new mortgage contracts were signed, worth a total of CZK 20.7bn. The result was higher than the existing record of 10,794 mortgages issued in June 2015, totaling CZK 19.75bn. The average loan reached CZK 1.91 million in May. Josef Rajdl of Fincentrum says that banks are trying to lure clients into longer fixation periods. A new law on consumer loans will make it possible for clients to pay back mortgages early and there’s a suspicion that the banks are hoping to catch as many clients on long-term fixation terms before the law is passed.
