American mortgage: what the bank wants from you in 2026
A loan secured by a property where you don't have to show what the money is for. The bank asks a higher rate for that freedom and lends a smaller share of the property's value than with a standard mortgage. Here is what it will actually ask of you.
What is an American mortgage?
It is a loan secured by a property where you don't have to tell the bank what the money is for. The proper term is a non-purpose loan. It has nothing to do with America. The name is simply what stuck locally.
Against a standard mortgage there is one difference, but it is a big one. With a purpose-tied mortgage you must show that the money goes into housing. Here you don't.
The bank carries more risk for that, because it doesn't see what the money is used for. It balances that out three ways: a higher borrowing rate, a shorter term, and a smaller share of the property's value.
You can even put up a property you're still paying off another mortgage on, as long as enough free value remains in it. It doesn't have to be your own property either. Someone else can stand as guarantor with it, if they agree.
How much will the bank lend you?
What decides it is LTV: the share of the loan against the value of the property given as security. For an American mortgage the ceiling is 70%.
On a flat worth five million with no existing charge on it, that means 3.5 million. For a housing mortgage it would be 4 million, or 4.5 over 36 years. The difference is therefore half a million or more.
When the property already carries a mortgage, that counts towards the limit too. So the free value you have left is less than what the property is worth.
The figures in the table are from the banks' own product pages, not our estimate. They are upper limits. What you actually get is decided once the application is assessed.
| Parameter | Komerční banka | Česká spořitelna |
|---|---|---|
| Maximum loan | CZK 20,000,000 | CZK 25,000,000 |
| Share of the property's value (LTV) | up to 70% of the property's price | up to 70% of the appraised value |
| Longest term | up to 20 years | up to 20 years |
| Proof of purpose | not required | not required |
Source: Komerční banka ↗ (in Czech) and Česká spořitelna ↗ (in Czech), checked on 21 September 2026. Our adviser can arrange a mortgage with either bank for you.
How is it different from a consumer loan and a housing mortgage?
An American mortgage sits between the two. It is cheaper than a consumer loan, because it is backed by security, and more expensive than a purpose-tied mortgage, because the bank doesn't see what it's for.
| Parameter | American mortgage | Consumer loan | Housing mortgage |
|---|---|---|---|
| Security | property given as security | no security | property given as security |
| Proof of purpose | not required | not required | only for housing, and you must prove it |
| How much it lends | up to 70% of the security's value | based on income, no security | up to 80%, or 90% over 36 years |
| Term | up to 20 years | usually up to 8 years | typically up to 30 years |
| Borrowing rate | in the middle | highest of the three | lowest of the three |
| Risk if you stop paying | you lose the property | debt recovery without security | you lose the property |
Can you get one without a credit registry check?
No. No one holding a licence from the Czech National Bank (CNB) will give you a mortgage without checking the credit registries. The duty to assess whether you can actually afford the loan applies by law to every lender, bank or non-bank.
A record in a registry doesn't by itself mean a refusal. What matters is what kind of record it is and how old it is, and that can be checked in advance.
The duty to assess creditworthiness is set by the Consumer Credit Act. If a lender got around it, the whole contract would be invalid, and a court would take that into account even if no one raised it.
Which registries are these?
When people talk about "the registry", they almost always mean one of three. Banks share data in BRKI, non-bank lenders in NRKI.
Both record everything, including loans paid on time. The data stays there for the whole life of the contract and for another four years after it ends.
The third is SOLUS, which mainly tracks debts past their due date. Those drop off it three years after being paid off.
A rejected application also leaves a trace: a year in the bank registry, half a year in the non-bank one. Anyone who tries five banks in a month and gets turned down by all of them reaches the sixth bank in a worse position than they started in.
What if I already have a record in a registry?
- A paid-off debt where you were a few days late once is usually not a problem. Banks mainly watch for repeated or long delays.
- An active debt past its due date is a problem almost always. The way through it is paying it off, not finding a bank that doesn't check.
- Enforcement proceedings or insolvency rule out a mortgage from a bank. Offers that claim otherwise are not from banks.
- Not sure what's on your record? You can request a statement from the registry operators yourself. Do it before you submit your first application.
Search for "American mortgage without a credit check" and you'll mostly get offers from non-bank lenders. They carry the same duty to assess creditworthiness as banks. They just tend to be more willing to lend against security to someone a bank has turned down, and they charge for that through the rate. We do not arrange loans of that kind.
Do I have to prove my income?
Yes, but it doesn't have to be a letter from your employer. The bank needs to know what you'll pay from. Only the form you show it in differs.
Banks today commonly accept a bank statement instead of a letter, and for the self-employed, a tax return or turnover on the account.
That's exactly why some offers use the phrase "without proof of income". They mean without a letter from an employer, not without showing that you have any income at all.
It tends to be good news for the self-employed, people with income from more than one source, owners of companies who pay themselves a low salary, and people with rental income.
When does an American mortgage pay off?
Most often in three situations: when you need more than a consumer loan will give you, or when you're combining several more expensive loans into one.
And when you're financing something a standard mortgage can't cover: settling a share in a divorce or inheritance, buying out a share in a cooperative flat, or a property abroad.
If instead you're buying or building a home, an American mortgage is the worse choice on both counts that matter to you. It has a higher rate and lends you less. A purpose-tied mortgage is built for that, and the bank takes on less risk with it.
One thing is worth saying plainly. You're putting up the property you most likely live in as security. If the repayments stop working out, the bank recovers its money from that property. That's a different consideration for a non-purpose consumption loan than for a mortgage on the house you'll be living in.
Frequently asked questions
Can I buy a home with an American mortgage?
You can, but it costs more. It carries a higher rate than a housing mortgage, a shorter term, and it lends only up to 70% of the security's value instead of 80 to 90%. If you're buying a property that will serve as the security, a purpose-tied mortgage is almost always the better choice.
Can I deduct the interest on an American mortgage from tax?
Only if you can show the money genuinely went on your own housing and can prove it. The deduction is tied to financing a housing need, not to the type of loan. The bank doesn't check the purpose on a non-purpose loan, but the tax office might ask, so keep your documents.
Does the property given as security have to be mine?
No. Someone else can stand as guarantor with their property, if they agree and sign the security agreement. That doesn't make them a borrower and they don't make the repayments, but their property backs the loan. If repayments stop, the bank can act against it.
What if I already have a mortgage on the property?
You can still put it up, as long as enough free value remains in it. The existing mortgage counts towards the 70% limit, so it's calculated from what you still owe. On a flat worth CZK 5 million with CZK 2 million left to pay, roughly CZK 1.5 million remains.
What happens if I stop paying?
The bank recovers its money from the security, meaning the sale of the property. Before that happens, it will usually offer a deferral or a new repayment schedule, and the sooner you get in touch, the more options there are. The worst thing to do is stop communicating.
How do we help with this?
You can work out the repayment in the calculator without leaving any contact details. If you want to go further, our adviser will go through your situation with you and submit an application to the banks on their list where your case makes sense.
You pay nothing. Our adviser is paid a commission by the bank. We'll tell you how much on request.
We don't promise approval or a specific rate. Both are decided by the bank once it has assessed the application.