Source: Housing Wire —
The Czech National Bank will reintroduce limits on mortgage lending using new legislative powers and also raise the countercyclical capital buffer (CCB) rate for banks to counter relaxed conditions amid a property price boom.
The central bank said on Thursday mortgage lenders would face limits on debt-to-income (DTI) and debt service-to-income (DSTI) ratios for applicants from April 2022.
A loan applicant’s debt to annual income should not exceed 8.5 times, and their monthly debt payments to income should not be more than 45% under the rules. Borrowers aged under 36 face slightly softer limits.
