As Radio Prague notes, on the recommendation of the Czech National Bank, mortgage loans are currently limited to 80% of the market value of the property; the client must cover the remaining part of the price with their own funds or through other types of lending.<\/p>
As an example, an apartment in Prague with an area of 65 square meters is given. The average price of such housing in the capital is 4.3 million crowns (at the current exchange rate, 165,385 euros). In the case of an 80% mortgage and a 30-year repayment period, the monthly payment would be 15,300 crowns (588.5 euros). The rent for such housing in Prague is 16,500 crowns (634.6 euros).<\/p>
The most significant difference between the monthly mortgage payment and rent in Prague occurs for apartments with an area of 66 to 80 square meters. On average, the mortgage payment is 3,241 crowns (124.7 euros) lower. Apartments larger than 100 square meters in the Czech capital, according to real estate websites, are rented for 40,000 crowns (1,538.5 euros) and more.<\/p>
In Brno, the second-largest city in the Czech Republic, apartments up to 65 square meters cost about 2.6 million crowns (100,000 euros). Renting such housing would cost 11,500 crowns (442.3 euros), and the mortgage payment would be about 9,500 crowns (365.4 euros).<\/p>
According to the consulting company KPMG, by 2015, 22% of citizens in the Czech Republic lived in rented apartments and houses. For comparison: in Slovakia – 11%, in Poland – 16%, in Hungary – 13%, in Switzerland – 55%, in Germany – 48%.<\/p>