Investment mortgage: the recommended 70% LTV is not a legal limit

Does the bank have to keep to that 70%?

No. It is a recommendation from the Czech National Bank, not a legal cap. The bank is allowed to depart from it. In practice it mostly does not: Raiffeisenbank builds 70% straight into the product parameters of its buy-to-let mortgage.

For mortgages, only one figure is binding. LTV, the loan amount's share of the pledged property's value, may not exceed 80%. Only an applicant under 36 reaches 90%, and only when buying a home for themselves. The regulator sets this by a formal measure, and the bank must keep to it.

The rest are recommendations. DSTI is the share of repayments in monthly income, DTI the ratio of total debt to annual income. The Czech National Bank has removed the binding caps on both: DSTI in the middle of 2023, DTI from January 2024. The recommendations for investment properties were added alongside the binding LTV, not in place of it.

One unexpected thing follows from this. The bank has an escape route from the binding limit: it may provide part of its new mortgages above 80%, up to 5% of the previous quarter's volume. This exception does not apply to the recommendation for investment properties, and the Czech National Bank states this explicitly. So the stricter figure does not even have the small allowance that the binding figure has.

Is my property an investment property?

What decides is the purpose of the purchase and the number of properties you already own. Either one is enough. A flat to let falls under the definition regardless of order. A third or any further residential property does too, even if you plan to live in it yourself.

A second property for your own use does not fall under the definition. If you own a flat and are buying a cottage next to it for yourself, the ordinary terms apply to you. For a third property, the purpose no longer matters; the number does.

Watch out for no-purpose loans. For an American mortgage, where you do not prove the purpose to the bank, the Czech National Bank recommends assuming an investment purpose unless proven otherwise. The opposite must be clearly shown by the bank's own assessment.

What counts towards the number of properties?

Every residential property, including abroad, and shares in a housing cooperative. How it is used does not matter. Your own home, a let property and a holiday home all count the same, and it does not matter whether you are still repaying it.

The bank checks the number with the Land Registry. Your own declaration usually is not enough. For properties abroad and shares in a housing cooperative there is no other way, since the Land Registry does not cover those.
A share counts from half upward. If you own at least half, it counts as a whole property for this purpose. Shares are not added together; two such shares mean two properties.
With several applicants, the one with more properties decides. Each is counted separately and the highest figure found is used.
A block of flats is counted by unit. One registered unit housing several households is treated as several properties.
A holiday property does not have to be counted. This applies to a cottage that is clearly unfit for year-round living, typically without a year-round water, electricity or waste-water connection.
A property for sale can only be excluded once it is signed for. Saying you are selling it is not enough, and neither is a draft contract. What counts is a signed purchase contract or a contract to conclude a future contract.

Does this also apply to my existing loan?

Only if you borrow more at the same time. The recommendation targets loans for a purchase. Refinancing and a new fixed-rate period without increasing the amount do not fall under it.

You can therefore move a mortgage on a flat you let elsewhere, and the recommended 70% will not apply to you. As soon as you increase the total loan amount, though, it is assessed again and under the stricter terms. The same applies when you take over someone else's debt.

A property still under construction also counts towards a purchase, as does a purchase followed by renovation, a cooperative share, and a future purchase in a development project. Loans purely for building or renovation, and buying land with no building to follow, stay outside the definition.

How much of my own money will I need?

At 70%, 30% of the value is left, plus the costs of the purchase. Watch what the percentage is calculated from: the property's valuation, not the purchase price.

If the valuation comes out lower than the price you are paying, you cover the difference on top of your 30%. For an investment property this hurts more than for your own home, because the missing amount is higher from the start.

A higher LTV for young applicants does not help here. The binding measure ties it to buying a home for yourself, so 90% does not apply to an investment property at any age.

Your own funds are not the only limit. A recommended DTI of 7 means your total debt should not exceed seven times your annual net income. Loans you are already repaying count towards it too.

Will the bank count rent towards my income?

Not all of it. The bank allows for the flat not being let every month and for money you will have to put into it. How much of the rent it recognises differs from bank to bank, and some want to see a signed tenancy agreement.

There is a catch here that is easy to miss. As soon as the expected rent from the property you are buying is counted towards your income, the Czech National Bank says the bank should treat the loan as an investment loan. A higher income on the application can therefore trigger the stricter terms. What banks otherwise recognise on the income side is covered on What income a bank recognises.

For its buy-to-let mortgage, Raiffeisenbank states that it counts rental income towards income and lends up to 70% of the pledged property's value. Česká spořitelna, Komerční banka and Moneta do not list a separate buy-to-let mortgage on their mortgage hub pages. Checked 21 September 2026.

Should I buy in my own name, or through a limited company?

These are two different loans, not two variants of one. The recommended 70% LTV and DTI of 7 target a consumer credit loan secured by a residential property. A loan taken out by a company does not fall into that category.

This does not mean a company automatically gets more. The application is assessed under different rules: the bank looks at the company's finances and sets its own terms. Consumer protection does not apply to a corporate loan.

Tax works differently for the two routes. That is a question for a tax adviser, not the bank, and it is worth asking before you sign a reservation contract.

What should you ask the bank?

Answers differ between banks most of all here, so get them in writing. Before that, though, calculate what you can actually get. The calculator has an income-based mode, and you will see the result without giving your contact details.

Do you treat this loan as an investment loan, and what do you base that on?
How many properties will you count for me, and how will you check the number?
How much of the rent will you recognise as income?
Do you need to see a signed tenancy agreement, or do you work with an estimated rent?
Will you lend above 70% of the value, and under what conditions?
What changes if I let the flat short term?

Frequently asked questions

Is the 70% LTV for an investment mortgage set by law?

No. It is a recommendation from the Czech National Bank effective from 1 April 2026. Only the 80% LTV cap is binding, and 90% for applicants under 36 who are buying a home for themselves. The bank is allowed to depart from it, but it mostly does not.

Is a second flat automatically an investment property?

It is not. A second property that you will use yourself does not fall under the definition. A third and any further property does, and there the purpose of the purchase no longer matters; the number does. A flat to let falls under it regardless, even if it is your first property.

Does a property I own abroad count?

Yes. Every residential property counts, in the Czech Republic and abroad, plus shares in a housing cooperative. The bank checks Czech properties with the Land Registry; you prove the rest with a declaration. How you use it does not matter.

Does the recommendation also apply to refinancing?

Only if you increase the total loan amount at the same time. Refinancing and a new fixed-rate period without an increase do not fall under it, so you can move a mortgage on a let flat elsewhere. A loan purely for building or renovation also stays outside it.

Can the bank lend me more than 70% of the value?

In theory yes, because it is a recommendation. The volume exception to the binding LTV cap, though, does not apply to the recommendation. So there is no formal allowance to rely on here, which makes it worth comparing several banks.