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Conditions for granting a mortgage are more stringent

Purchase their own home is financially responsible step. When living in your own apartment or house to pay rent to the landlord owned the property can always be replaced or sell a lot of people in rental housing do not feel as freely as in their own. The fair value of property which will over time also increases. The vast majority of the people in the financing of new housing uses a mortgage. What's new for 2017?

Since December 2016 entered into force a law on consumer credit and the November 2016 changes were made in the payment of tax on the acquisition of immovable property. These legislative changes, along with the recommendations of the CNB's own financial security of applicants for mortgage loans affect drawdown of the mortgage loan. "Banks must now carefully examine the creditworthiness of an applicant for a mortgage loan and do not already mortgage loans in full real estate prices, clients must have other funds of their own at least five per cent amount, since April 2017, ten percent amount, obtaining a mortgage loan is thus harder" says Emil Brooch (FINFOCUS).

Planning mortgage

The applicants themselves in a mortgage should your current and future financial situation with regard to the monthly repayment of a mortgage loan assessed more cautiously than banks. The financial planning of the maximum possible amount of monthly installment should retain sufficient reserve a reckon with temporary worsening income family situation. Own financial criteria for applicants for a mortgage should be even stricter than those of banks. Each mortgage loan is good to very carefully think through each loan defaults means financial problems from which it is difficult to find a financial balance back.

Increase in the cost of buying property tax due

Since November 2016 pays tax on the acquisition of immovable property always buyers. Before the amendment to the tax paid tax on the acquisition of immovable property in selling real estate seller, unless agreed in the purchase contract, the buyer pays the tax. The tax rate remained the same, ie 4%. Paying tax on the acquisition of immovable property must be included in the total cost of acquiring the property. Payment of tax on the acquisition of immovable property while the buyer must also pay from its own resources, because the payment of taxes can not be financed by a mortgage loan. "The advantage of acquisition of new buildings or cooperative apartment is that the tax on the acquisition of immovable property does not apply," says Emil Brooch.

Early repayment mortgage

Legislative changes thus strengthening the citizens drawdown mortgage. However, it is preferable to repay the mortgage loan early. Now banks can not demand reimbursement for early repayment of mortgages in difficult life situations such as. Long-term illness or disability. Before each annual contract can now be free to repay up to 25% mortgage. "If there is to sell the property, which is pumped mortgage after two years, so it is possible to prematurely repay the entire loan, the banks are entitled only to reimbursement of reasonable costs incurred, up to a maximum equal to the percentage of early repayment above the upper limit it should amount to CZK 50 000, "says Emil Brooch.

Mortgage loan is good debt

Indebtedness of families due to purchase their own home is the right financial decisions, well-chosen high quality mortgage on the property corresponding to the financial possibilities of the family is a good debt. Despite legislative changes is the situation in the mortgage market and favorable offer is very varied. Selecting a mortgage loan, however, is the need to devote sufficient time, as well as a selection of dream home. Parameters specific contracts is appropriate to adjust the current financial situation of the family, because it is a long-term loan, so it is good to consult with a specialist who can, thanks to the selection of optimal variant for the family in time to save significant funds.

Source: tz, editorially modified

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