Facts at Glance

• term up to 30 years
• up to 100% loan to value
• minimum loan CZK 200 000
• no limit to maximum loan but depends on repayment ability
• choice of currencies
• attractive interest rates 
• fixed rates available

Buying property in the Czech Republic, whether you are going to live in it or rent it out, is without doubt an excellent long-term investment. Property prices have steadily risen over the last 10+ years and the increases are not stopping.

Getting a mortgage in the Czech Republic is not dissimilar to any other European Country but most Expats don’t know where to start and more importantly where to get help. Like most things in CR though, the process is very bureaucratic and can be time consuming.

The main lenders are in fact the Banks in the Czech Republic of which there are many to choose from.

Banks have many different lending criteria and rates, so using an Independent Mortgage Broker is useful. The job of a mortgage broker is to find you the most suitable and most competitive deal in the market place. Therefore using one can not only save you time and trouble but also money!

There is a “chicken and egg” situation with getting a mortgage and buying a property since the bank will not definitely agree to lend you the money until you have found the property. But then most people will not find a property until they know they can get a mortgage.

Speaking to someone with experience is of help here since they know how the banks think and can assess your situation before you start property hunting and let you know not only the likelihood of getting the loan but also approximately how much you will be able to borrow.

This means you can go out house/flat hunting with the sound knowledge of how much money is in your pocket. It also puts you in a stronger position when negotiating with vendors since if they know your financing has been “pre arranged”, they know that you will be able to complete the purchase quickly. This puts you in a competitive position to those that don’t have financing arranged.

The mortgage can be arranged for a period of up to 30 years.
“Fixed Rate” mortgages are available for pre set periods of, for example, 1, 3 or 5 years. These are useful if interest rates are likely to rise over the similar period and it helps you budget since you know exactly what the repayments will be over a fixed period of time.

Minimum loans are normally CZK 200,000 and there is no upper limit, it just depends on your ability to repay the loan.

Some banks, but not all, require life assurance to be set up for them to grant the mortgage. Beware of the banks that try to sell you life assurance since they may not be offering the most competitive rates. You can always set up your life assurance independently and if necessary assign the policy to the bank should they require it.