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Mortgage in the Czech Republic

A mortgage in the Czech Republic is often required for foreigners who come to live in this country and do not have their own homes. From the article, you will learn about the benefits of mortgages in the Czech Republic, on which the mortgage is provided. You will also find out who can apply for a mortgage loan.

Interested in buying a new house or apartment in the Czech Republic, but do not have enough money? The mortgage loan will make your dream come true. In General, the first opportunity to get a mortgage in the Czech Republic appeared in the 18th century, but, of course, then the mortgage market was not as developed as it is today.

A mortgage is a long-term or medium-term loan of a large amount of money, the purpose of which is to invest in real estate. This is a loan for the purchase or construction of the real estate, the repayment of which is insured by a pledge, often at the construction stage. A mortgage in the Czech Republic is also used to settle claims for the inheritance of property, settlement of property dispute in divorce.

When deciding to enter into a mortgage you must remember that for a long time agree to pay a certain amount. The loan repayment period ranges from several years to decades.

The amount of mortgages in the Czech Republic

Standard mortgages up to 70% LTV, but there are loans up to 100% of the property value. They do, however, have higher interest rates. So, it’s possible to buy an apartment with a mortgage in the Czech Republic.

Advantages of a mortgage in the Czech Republic:

  • Easy and fast way to purchase real estate
  • Fast mortgage loan
  • Possibility to sell the mortgaged property
  • Mortgage interest reduces taxes
  • Mortgage loan you can get up to 40 years
  • You can take out a mortgage for several people
  • Mortgage loan in the Czech Republic

A mortgage loan can provide the acquisition of real estate, land, repair, construction, modernization or repair of the property. Mortgaged property as a collateral mortgage can be; detached house, apartment, land for development and recreational facilities, commercial buildings, residential and office space.

Who can apply for a mortgage loan?

  1. A natural person permanently residing in the territory of the Czech Republic.
  2. A foreign citizen with Czech citizenship.
  3. Foreign nationals of non-EU countries with income in the Czech Republic.
  4. Non-EU foreign nationals with EU income.
  5. A foreign citizen of a member state of the European community who has income in the Czech Republic or abroad.

If the applicant’s income to repay the loan is satisfactory, there is no need to check and show the second income applicants. Otherwise, the second applicant must have sufficient income.

How to get a mortgage for spouses?

A loan agreement is signed with your partner, wife or husband, who thus becomes a co-borrower. After signing the mortgage contract, both applicants become borrowers who are further bound together. In case of problems with a mortgage payment in the Czech Republic, the bank has the right to demand performance of obligations from any of the spouses.

The main mortgage banks in the Czech Republic:

  • Czech mortgage Bank
  • Commercial mortgage Bank
  • ČSOB mortgage
  • Mortgage bank
  • Mortgage Bank Wüstenrot
  • Czech-Moravian mortgage Bank

Currently, the mortgage market in the Czech Republic is active in a total of 17 banks that provide mortgage loans.

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