CNB to implement stricter recommendations for mortgages
The Czech National Bank (CNB) will expand from October 1, 2018, its recommendations for the provision of mortgage loans by stipulating income requirements. The applicant’s debt should newly not exceed nine times the yearly net income (DTI indicator). The applicant should also spend no more than 45% of the net monthly income on the debt instalment (DSTI indicator). In specific cases, it will be possible to exceed the values, but for no more than 5% of loans. The loan-to-value (LTV) valid limits remain unchanged. The central bank has also announced that it continues with the preparation of the CNB act amendment that would give it the competence to set binding limits for LTV, DTI and DSTI.