APPLICATION OF DSTI AND DTI MACROPRUDENTIAL POLICY LIMITS TO THE MORTGAGE MARKET IN THE CZECH REPUBLIC FOR THE YEAR 2022
DOI:
https://doi.org/10.52950/ES.2022.11.1.007Keywords:
Macroprudential policy, Debt service to income, Debt to income, Loan to value, Mortgage loans, Real estateAbstract
This paper deals with selected instruments of macroprudential policy, the key determinant of which is the amount of the monthly net income of the mortgage applicant. In November 2021, the Czech National Bank reintroduced the maximum DSTI as a debt service indicator and DTI as an income indicator, with a view to developments in the real estate market in the Czech Republic. The paper discusses which of these limits will be more decisive for mortgage applicants under conditions of rising mortgage interest rates in 2022 following repeated increases in the base rate by the Czech National Bank. The study aims to determine at which interest rate DSTI or DTI becomes more important and which of the limits will be entirely irrelevant for almost all mortgage applicants in 2022, even with regard to age according to the legal conditions.
Data:
Received: 7 Jan 2022
Revised: 25 Feb 2022
Accepted: 6 Apr 2022
Published: 20 Apr 2022
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Copyright (c) 2022 Ondřej Venhoda (Author)
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