Finance Minister Schillerová proposes larger mortgage tax deduction for young borrowers

Alena Schillerová, the Czech finance minister, outlined a proposal to expand the tax deduction available on mortgage interest for borrowers under the age of 36. She indicated the measure would apply to both existing mortgages and new applications, with the goal of implementing it from the next fiscal year. The announcement was made during a televised interview, where she also expressed dissatisfaction with banks’ recent rate hikes.

Mortgage interest rates have risen for seven consecutive months, hitting a peak not seen since early 2024, according to the Swiss Life mortgage index. Schillerová noted that the central bank’s base rate has remained unchanged, suggesting that banks could lower rates without harming monetary policy. She called on lenders to reflect on the criticism and avoid further escalation of borrowing costs.