Today, people can arrange a mortgage loan to finance their own home not only in person at a branch of their chosen bank or with an independent mortgage specialist, but also online via the internet and by phone. “Interest in arranging a mortgage online has been growing significantly in recent years. One of the main advantages of arranging a mortgage remotely is saving time. On the Internet, mortgage seekers can immediately find out the current offers of the various banks on the market. If they choose one of the offers, they can also complete all the necessary formalities associated with arranging the loan very quickly. For example, our online mortgage banking system provides an overview of all the documents being processed and the status of the application. Nowadays, people across all generations are arranging mortgages online,” says Veronika Hegrová, sales director of hyponamíru.
Interest rate is key when choosing an online mortgage
According to the experience of mortgage specialists from the fintech start-up hyponamíru, the primary motivation for Czechs to arrange a mortgage online is the possibility of obtaining a better interest rate or other benefits. However, this is not the only criterion they take into account when choosing a mortgage. Veronika Hegrová adds: “People may have other preferences when choosing a mortgage. For example, some people want to get an independent offer from a bank where they already have a certain financial product. Many people who are interested in a mortgage also base their decision on their personal experience with a particular financial institution. For example, there are those who do not want a particular bank from the outset because they have had a bad experience with it. For example, they do not know how long it will take to process the mortgage or they are afraid that the mortgage will not be approved.”
Most Czechs take out a mortgage after they turn 30
According to the statistics of hyponamíru, the largest group of people interested in an online mortgage are people aged between 30 and 36. More than a third of applicants currently fall into this age category. Another 28 percent are between the ages of 37 and 44, and 22 percent of applicants are arranging a mortgage at the age of 45 or older. “The average age of mortgage applicants has been increasing slightly in recent years. Many young people are putting off buying their first property until later. According to our statistics, only 15 per cent of applicants are under the age of 29,” says Veronika Hegrová.
Some domestic banks are trying to appeal to the younger generation with so-called mortgages for the young. However, don’t expect any special benefits from this offer. This product does not offer any advantage in terms of interest rates or, for example, a longer maturity.
Mortgages are mainly taken out by men
In more than half of the cases, two or more people take out an online mortgage together. Statistics from hyponamíru also show that it is mainly men who are responsible for financing their own home. In fact, in 78 per cent of cases they act as the main applicants in the mortgage application. In the rest of the cases, it is women. A total of 12 per cent of women arrange a mortgage without another co-applicant. As regards the main source of income, three quarters of mortgage applicants are employed. The remaining quarter are self-employed.
Interest rates are rising and Czechs are opting for shorter fixation periods
With rising property prices, the amount of the mortgage is gradually increasing. In February this year, the average amount of an online mortgage was CZK 3.62 million. “In recent months, we have witnessed a steep rise in interest rates. Currently, rates are already above four per cent and further increases are inevitable. The interest is now mainly in shorter fixations. In February this year, the majority of the online mortgages we arranged had a fixation period of up to five years (89%),” adds Veronika Hegrová.