KB cuts mortgage loan rates again

Prague, 8 April 2005 – Effective from today, Komerční banka (KB) has cut interest rates on its mortgage loans. The Klasik mortgage loan, with the rate fixed for five years, will now be available to clients up to 0.37 per cent point cheaper than so far; the interest rates start from 3.99 per cent as against the original 4.36 per cent p.a. On the Plus mortgage loan, with the rate fixed for five years, the reduction is from 4.55 per cent to 4.20 per cent (0.35).

"We try to satisfy the continuously increasing demand for mortgage loans and meet the clients' housing needs. Thanks to these reductions we have made also the Plus mortgage loan more attractive - Plus covers up to 100 per cent of the price of the property and its current interest rate is again closer to the level of the Klasik mortgage loan rate. When taking steps such as reducing interest rates, we need to take into account the overall situation on the inter-bank market and the long-term factors that influence the cost of resources, which has recently been going down," says Petr Slabý, Deputy Head of Marketing.

Clients can request mortgage loans at any of the 337 KB branches or directly at 91 specialised mortgage centres located throughout the Czech Republic. An advantage is that the application will be processed quickly, within seven business days (from the moment of furnishing complete documentation) and also the opportunity to draw on the mortgage loan as early as upon presenting the petition for the registration of the lien confirmed by the Land Register office. KB also makes it possible to add up the incomes of multiple persons for the purposes of requesting a mortgage loan. For example, a young couple's income may be augmented by the income of the parents of any of the spouses, i.e. two households in total. A KB mortgage loan need not only serve for procuring a residential property - it may be used, under the same terms and conditions, for buying a piece of land, buying or building a garage or recreational house, or some other property. Moreover, KB is one of the few banks to offer mortgage loans for obtaining a cooperative flat - transfer of membership rights and obligations - under the standard conditions, i.e. at the lowest possible rates.

KB's minimum interest rates for all the fixed-rate periods offered as from April 7, 2005, are listed in the following table:

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