In what would be a reversal of its most recent moves, the Czech National Bank is now considering making it easier for younger people to qualify for mortgage loans. Spooked by what looked like an overheating real estate market, the CNB has been tightening restrictions on mortgages since last year. Mortgage loans with LTVs or more than 80 percent are no longer allowed, monthly installments can’t exceed 45 percent of the applicant’s monthly salary and the total sum borrowed can’t exceed yearly earnings by more than 9 times. Novinky.cz writes that the spokeswoman for the Finance Ministry Anna Fuksová confirmed that applicants 36 and under would be allowed to borrow up to 90 percent of the value of the property, that installments could reach 50 percent of their salary. She added that the upper limit for the amount borrowed could be up to 10 times more than the applicant’s yearly wage.
