New Mortgage Act
The new Mortgage Act No. 257/2016 Coll., on Consumer Credit, introduces a number of changes — both for banks and their clients. Banks are now required to assess their clients’ creditworthiness much more strictly. On the other hand, clients can repay up to 25% of their mortgage each year on the anniversary of the contract signing without any penalty. They may also make an extraordinary payment in exceptional circumstances.
Another advantage for loan applicants is that banks must now inform clients in advance of the total cost of the loan, allowing them to easily compare which bank offers the most favorable conditions.
Validity of the Mortgage Act
The new Mortgage Act No. 257/2016 Coll., on Consumer Credit, has been in effect since December 1, 2016.
If you have any questions, please do not hesitate to contact us.