- Komerční banka does not require invoices for construction work and materials under mortgage loans with advanced disbursement;
- This mortgage is suitable for, e.g., self-help construction, wooden houses and prefab homes;
- Applications for mortgages at rates from 1.99% p.a., fixed for 3 to 7 years, can be delivered to KB by the end of April 2015;
- In this period, KB does not charge fees for application processing or property valuation for the Klasik mortgage loans where the rate is fixed for 3 or more years, and clients therefore save several thousand crowns right up front.
Komerční banka does not require invoices for construction work and materials under mortgage loans with advanced disbursement. The paperwork related to the construction or refurbishment of their house will therefore be much simpler for the bank’s clients. The budget needs to be presented when arranging for a mortgage. The funds are then released to credit the client’s account, and either the whole amount or in tranches depending on the clients’ requirements. Materials and suppliers’ services are paid from the loan so provided. Clients prove to KB’s valuer that the drawn funds were used for the right purpose only following the completion of the particular work.
“Komerční banka provides this type of up to CZK 5 million mortgage loans up to 100% LTV for houses and land. This is the optimum alternative option in cases of self-help construction and for prefab homes and wooden houses. We recommend that our clients use the current, lowest ever interest rates and fix their mortgage loan rate for a longer time,” said Patrice Begue, Executive Director for Marketing and Communication at KB.
Komerční banka currently offers rates from 1.99% for the Klasik Mortgage Loan, and, in addition, without any fees. This offer applies to all applications delivered to KB by the end of April 2015. In up-front fees alone, clients can save at least CZK 3,900. In addition, for an average mortgage loan of CZK 1.6 million and 30-year maturity, monthly instalments are only CZK 5,906.
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.