Prague - Banks in the Czech Republic granted 17,680 mortgage loans worth Kc28.9bn to citizens in the first quarter of this year and the volume of the newly granted loans grew by 3.9 percent year on year to Kc28.9bn, according to data from the Local Development Ministry.
Rodinný domek, klíč, hypotéka, stavební spoření, stavba, reality - ilustrační foto ČTK-AP Andrew Milligan
"Low interest rates which, according to Hypoindex, sank to another record low in March have been strengthening client interest in the long term. Stable real estate prices also have an influence, of course. They have been at a stable level for several quarters of a year in a row," mortgage bank Hypotecni banka CEO Jan Sadil commented on the results.
Hypotecni banka with over a 28 percent market share is number one on this market.
The average interest rate on mortgage loans sank to 2.93 percent in March, the lowest level in the period when the indicator has been monitored.
Overall, mortgage banks granted 18,000 mortgage loans worth Kc37.5bn to citizens, companies and municipalities in Q1 2014. The number of the loans rose by 6 percent and their volume by 9 percent on the year.
In the whole of last year, banks in the Czech Republic provided 92,600 mortgage loans worth a record Kc149.3bn to citizens and the yr/yr growth in the volume of the newly provided loans reached almost 23 percent.
Mortgage loans granted to citizens (Kc bn):
Source: Local Development Ministry