“Compared with the interest rates usually provided, Komerční banka’s offer is really advantageous. For example, according to Fincentrum Hypoindex the average interest rate for mortgage loans provided in the Czech Republic was 2.37% in December 2014. Compared with this rate, clients can save up to hundreds of Czech crowns per month on instalments at Komerční banka,” says Patrice Begue, Executive Director for Marketing and Communication.
Thanks to the advantageous interest rates and unrivalled services related to mortgage loan arrangements, Komerční banka is significantly expanding its market share in housing finance. By the end of 2014, the portfolio of Komerční banka’s mortgages had expanded by 9.3% year-on-year to CZK 159.8 billion.
Komerční banka also provides mortgages in the form of “Flexibilní hypotéka” [Flexible Mortgage], which makes it possible to defer the repayment by up to 12 months, interrupt repayment for up to 3 months and reduce the originally agreed instalments by up to a half. On the other hand, if all goes well and clients want to repay the loan earlier they can repay a part of the loan by extraordinary instalments of up to 20% of the overall loan amount every year.
The subject of construction and refurbishment is topical as the spring season approaches. For these purposes, Komerční banka offers the increasingly popular “mortgage loan with advanced disbursement”, which allows clients to carry out a part of the work on a self-help basis. The clients submit a budget on the basis of which funds are released to them, which they can use for, e.g., costs of material and suppliers’ services. Clients only document the purpose for which the disbursed funds were used to Komerční banka’s valuation specialist following the completion of particular work.
The current reduction in the interest rates for Komerční banka’s mortgage loans is not limited in time.