Komerční banka cuts mortgage rates

Press release

Prague, 23 February 2016 – Komerční banka has decided to cut the interest rates by up to 0.30 pp for the most frequently provided mortgage loans. Up to 90% LTV mortgages with three- to seven-year fixed-rate periods are offered at 1.89% p.a., the lowest ever rate. In 2015, the volume of KB’s new mortgages increased by 34% to CZK 45.8 billion.

Effective since 22 February 2016, Komerční banka has significantly reduced the interest rates for its mortgage loans to the lowest level ever.  The rate is now only 1.89% p.a. for the most sought after mortgage loans, i.e. up to 90% LTV with three- to seven-year fixed-rate periods. The interest rates for Komerční banka’s mortgage loans have now been cut by as much as 0.30 pp.

“Komerční banka’s current offer is highly advantageous for clients, bringing the certainty of low interest rates for a long time. With the most frequently selected fixed-rate period of five years, the rate cut translates into annual savings of more than CZK 10,000 in instalments. In addition, our offer is not limited in time for the time being,” said Vladimír Jeřábek, member of the Board of Directors and Executive Director for Distribution at KB.

Thanks to the favourable interest rates and unrivalled services related to mortgage arrangements, Komerční banka is significantly expanding its involvement in housing finance. By the end of 2015, Komerční banka’s mortgage portfolio had grown by 14% yoy to CZK 185 billion. Its mortgage loan with advance disbursement, intended for self-help construction, was very successful. Last year, this mortgage received awards in The Bank of 2015 and The Best Bank of 2015 polls.