Stricter rules proposed on mortgages for older Czechs

The Czech government is pushing a bill that would make it easier for younger people to borrow more money in mortgage loans, while restricting access to those over 36. The Czech National Bank tightened restrictions on mortgage loans last year, asking banks to limit their loans to just 80 percent of the value of the property. The CNB allowed banks to loan up to 90 percent in exceptional cases, but the total volume is not supposed to exceed 15 percent of the bank's mortgage loans. Hospodářské noviny reports that the Czech government wants to lift the allow 90 percent loans to be made to everyone up to the age of 36. Above that age, however, the government wants to limit loans of more than 80 percent to just 5 percent of a bank's total volume of mortgage loans. The Czech National Bank estimates that current residential prices are 15 percent overvalued.