Does the development reflect the year of central bank rate hikes?
The situation in the area of term deposits roughly reflects the rate cut by the NB. Most of the banks have set some difference between the charged rate and the declared rate of the NB, and with this difference they lower the offered rates for existing and new clients. This does not apply to mortgage loans. Rates are falling, but not as quickly and proportionally as is the case with deposit products.
Why not pay for a mortgage loan? m is it the bottom?
It is due to two factors. Banks, fearing the so-called spinning round of refinancing, are lowering rates only very slowly with the aim of delaying the inevitable at least until this summer, when the written rules for the next refinancing start to apply.
Jan Brejl
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The second reason is the growing competition on the mortgage market. After the termination of Sberbank’s activities and the cessation of Creditas Bank’s mortgage business, there were only five banks left on the market with relevant market conditions that can really influence the supply side.
How do you see the development of various banking products in terms of year? The fall in inflation and its level at the NB inflation rate will lead to further reductions in annual rates, and this will also affect deposit products. Until you imagine that mortgage rates will be tripled by the end of the year.
What advice would you give to people who put their pensions into bonds and term deposits last year? Should pensioners withdraw this product and give it somewhere else?
Bad for the given builder. If it is a short-term financial reserve, I would recommend keeping the funds in savings accounts and term deposits. For medium-term and long-term customs, the obvious way is investment. In the medium term, a reasonable mix of stock and bond funds, where bonds float. For long horizons, sing according to the action in the mix. I would recommend, taking into account the risk of short-term negative effects, to use the means gradually. A new interest- and tax-deductible form of investment, the so-called DIP, has also been created for regular investors.
This year, together with the government’s consolidated package, there have been changes in many financial products. This includes, for example, a construction contract, but also a pension contract and a supplementary pension contract. Which changes do you see as the most significant?
As the most important change, I consider the introduction of a long-term investment product, the so-called DIP, which allows for tax-deductible investments with the aim of using the dispute in the income. According to the state’s efforts, people save more for the supplementary pension plan, when it is possible from 1.7. In 2024, you can get an annuity from 100 to 4,080 crowns. The last significant change is the dream of the annual contribution to the construction contract of 1,000 crowns instead of 20,000 crowns. This step reduced the attractiveness of this product, and I don’t see it as meaningful for housing without tied financing.
Are these changes manifested in any concrete way in your company’s statistics?
The changes in the pension plan have increased the demand for this product, by as much as 100 percent compared to last year. Another benefit is the new option to switch between pension companies from old and non-performing funds to new transformed funds without the necessary intermediate step and fully digital. Introduced DIP, then raised the requirement for regular investment. And the dream of a permanent contribution to the construction company has been manifested in the interest of this product since the middle of last year.
You have changed the building insurance company, after paying the state allowance for the construction contract, they started renting even at a cheap price for a questionable house. How do you perceive it?
The introduced combination of the building connection with the state subsidies for green housing is a step in the right direction. It is too soon to assess how it will affect demand for this product in the future. From my point of view, it is unnecessary that the combination with the subsidy be limited only to the products of construction companies. For this availability, it would make sense for banks to offer this option as part of their portfolio.
But there are also green mortgages
Urit form green mortgage with them is her years. With regard to the stronger communication of the ESG topic, banks are also focusing on this, and some provide favorable years if you are financing a property with a low energy efficiency with a mortgage.
