Another crushing cut to the family budget. It made the thing that people pay the most for expensive, and really

Looking at the statistics office’s inflation numbers can reliably put you in a bad mood. Probably no one could have imagined last year that prices would suddenly shoot up in such a way and that literally everything people need would become more expensive. From food to energy to housing.

Advantage ends

And it is the last mentioned item that hides a multiple problem. In addition to the fact that the prices of housing itself, i.e. most often apartments, are still increasing, the prices of products that are needed for its reconstruction are also skyrocketing. And to make matters worse, the cost of financing is also rising dramatically.

This is most often solved in the form of mortgages. At the same time, over the past ten years, people have gotten used to the fact that a mortgage costs almost nothing, which means that the interest rate is very low. It is true that in thirty years even two percent interest on an item of several million will give a relatively nice amount, but no one really addressed that. Because he simply didn’t have to.

The current situation was that a mortgage very often worked out better than a rental. And who wouldn’t do such a deal, after all, with a loan you have the prospect of owning the apartment one day, instead of sending a similar amount to someone else every month.

But today it turns out that it was more of an anomaly. Money has value and it returns. Today, you will no longer get two percent interest, but rather 6 to 7%. But that’s a completely different story.

The repayments literally shot up

Of course, this will dramatically limit the options for people who want to take out a new mortgage. Many will probably not get this precisely because their repayment would be too high.

But those who already have a mortgage and are used to paying relatively low installments also have a problem, and perhaps especially so. However, now they will have to refinance at significantly higher interest rates. While you used to pay 25,000 crowns per month for a mortgage of 5 million crowns with a repayment period of twenty years, today it would be 35,000 crowns. In addition, the interest is constantly increasing, so this amount is not final.

This is already a significant cut into the family budget. Moreover, one that no one is counting on yet. It will bring an even worse surprise.

Foto: Shutterstock

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