Tuesday, 20 October 2020

Central bank sets new rules for early repayments of mortgages

Prague Daily Monitor |
8 March 2019

The Czech National Bank (CNB) set new rules for the early repayments of mortgages, according to regulations it published on Thursday. The new rules limit the charges banks can pass on to customers in a major change from previous practices.

According to Czech Television, the CNB's ruling states that banks can only charge administrative fees for early repayments, in a departure from the previous practice of charging a penalty for the same, which often included costs paid to a broker and other excesses.