Mortgage Lending in the Czech Republic
|Author:||Mgr. Radka Kováčová|
|Year:||2005 - summer|
|Leaders:|| † doc. Ing. Jiří Havel CSc.
|Work type:|| Finance and Banking
|Awards and prizes:|
|Abstract:||The objective of this diploma thesis is to deliver a complex view on the mortgage lending in the Czech Republic, an issue with history as short as ten years. Several aspects of mortgage lending are introduced. Firstly, mortgage credit is defined, placed within theoretical framework of financial markets, and its rules are described. In the next step, argumentation of economic reasons for the combination of mortgage credits and other financial instruments is presented.
State subsidies of mortgage lending and building savings as well as the reduced value added tax for housing construction are analyzed, since all of these tools should support investments into private housing. Moreover, this thesis shows mortgage bonds as a specific funding instrument and examines its recent usage in the Czech Republic. Finally, the thesis analyzes the development of mortgage credit volumes and their interest rates, compares mortgage credits with other loan products and inspects the differences of the Czech mortgage credit market with other European markets.