The Česká spořitelna mortgageIn 2010, the Demand for Mortgages from Ceska Sporitelna was Greatest in Prague and Lowest in the Karlovy Vary Region

In 2010, the Demand for Mortgages from Ceska Sporitelna was Greatest in Prague and Lowest in the Karlovy Vary Region

• 2010: Praguers took out the most mortgages from CS: over 2,000 mortgages for more than CZK 4.3 bn
• Those in the Karlovy Vary Region arranged the fewest mortgages with CS: 200 mortgages worth CZK 270 million  
• The strongest month in terms of the number of mortgages arranged with CS was December,
  with a volume of CZK 2.3 billion
• People most commonly borrowed CZK 1.6 million from CS, with a 25 year repayment period  
• The average monthly instalment of a CS mortgage was CZK 8,800  

Last year, residents of Prague showed the greatest interest in mortgages from Ceska Sporitelna.  More than 2,000 Praguers took out a mortgage, in a volume exceeding CZK 4.3 bn. There was also great interest in mortgages in the Moravia-Silesia Region and Central Bohemia. In each of these regions, more than 900 people arranged mortgages for more than CZK 1.3 bn. The least interest was shown in the Karlovy Vary Region, where more than 200 people took out a mortgage last year for CZK 271 million. In 2010, more than 11,000 clients took out an Ideal Mortgage from Ceska Sporitelna, with a total volume of CZK 16 bn. The number of new mortgages at the Bank increased by 13%, over 2009. 

“Over the long term the greatest interest in mortgage loans is shown by people in Prague, as well as in Central Bohemia and the Moravia-Silesia Region, i.e., regions with a high proportion of urban populations and commuters. On the other hand, the least interest was shown in the regions of Karlovy Vary and Zlín,” said Veronika Jančová, Director of Mortgage and Business Loans, at Ceska Sporitelna. “However, there has been a palpable increase in interest in mortgages in other parts of the country. People have realised that during a time of very low interest rates it makes sense to take out a mortgage. However, rates on the interbank market are rising at present, and so we can expect an increase in mortgage interest rates in the future,” added Veronika Jančová.   

The strongest month in terms of the number of mortgages taken out at Ceska Sporitelna was December, with loans arranged totalling CZK 2.3 bn. The average Ceska Sporitelna client is 36 years old, married, has completed at least secondary school education, and most often takes out a mortgage for CZK 1.6 million, which he or she pays back over approximately 25 years. The average monthly repayment is CZK 8,800.

Two-thirds of clients take out insurance covering their ability to repay the mortgage, and an expanded insurance scheme is becoming increasingly popular, which covers even a loss of employment. The period for which interest rates are pegged has not changed over the long term, and clients most frequently opt to fix their rate at five years.  Mortgages are most frequently arranged in order to purchase property rather than to build or renovate existing property.

The Ceska Sporitelna Ideal Mortgage is provided without a processing fee, and offers other services free of charge, such as consultation and the arrangement of the mortgage, a 30-day interest rate guarantee, on-line property valuations compiled at a branch, and unrestricted drawdown during the first three months. Clients can select from a range of optional services provided with a CS Ideal Mortgage and put together a package meeting their requirements and wishes. The services most often elected include insurance against an inability to make repayments, extraordinary payments, and express drawdown. Clients who submit an application for a Ceska Sporitelna Ideal Mortgage, including all of the supporting materials, between 1 January and 28 February 2011, will get the Extraordinary Payments service free.

For more information please contact the Press Centre of the Ceska Sporitelna Financial Group (CSFG):

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