Frequently asked mortgage questions

Under the Consumer Credit Act, a mortgage loan is a loan secured by a charge over a property, whose value serves as security for repayment.

Three main differences from an ordinary consumer loan:

• Secured against property. If you stop repaying, the bank can move to sell the mortgaged property. Not straight away, and not without you: what has to happen first is covered on I can't keep up my mortgage payments.
• Longer term. Typically 10 to 30 years. The CNB recommends not exceeding 30 years, though it isn't binding, and some banks offer up to 40.
• Lower interest rate. Thanks to the lower risk, banks offer rates several percentage points lower.

This model is standard in Czechia and works the same way as with estate agents. A bank has its own sales network (branches) as well as an external one (intermediaries). The commission is roughly the same either way, so your rate isn't usually any worse than going "straight to the bank".

If anything, the opposite: an adviser sees several banks' offers at once, so they often negotiate better terms than a branch pushing a single product.

What happens, and when

• At the start: the calculator, a preliminary assessment, connection with an adviser.
• Then: gathering documents, submitting applications, bank approval.
• Next: the property valuation and signing the loan agreement.
• Finally: entering the charge in the Land Registry and drawing down the loan. This part depends on the Land Registry, not the bank.

You can work out a rough figure yourself in 60 seconds in our calculator. The value of the property also matters (CNB's LTV cap is 80%, with a 90% exception for applicants under 36 buying their own home).

"Own funds" includes savings, a gift from family backed by a written agreement, or the surplus from selling a property you already own.

A consumer loan for the deposit works, but the bank will see the new repayment in the register and count it as one of your outgoings. It can be put together, just in the right order; we go through the options on Mortgage without savings.

For employees

• An income certificate from your employer (no older than 1 month)
• Bank statements going back 3 months
• ID card

For the self-employed and business owners

• Tax returns for the last 2 years, including attachments
• A certificate of no outstanding tax debt from the tax office
• Statements from your business and personal accounts

This comes from the law: under the Anti-Money Laundering Act (Act No. 253/2008), a bank must verify your identity before signing the agreement. Many banks can now do this fully online through Bank ID; elsewhere it happens once, in person.

An online (desktop) valuation works for standard flats in Prague, Brno and regional capitals. Houses, cottages and unusual properties need an in-person inspection.

A rejected application stays in the register. A year in the banking register, six months in the non-banking one. Other banks will see it there, because sharing that is the whole point of the register.

So it's worth distinguishing two things. Asking about terms isn't recorded in the register, so an adviser can request terms from several banks at once. A submitted application is recorded, and it only goes out to a specific bank once the paperwork has been compared. So after a rejection, it makes sense to find out why, not to send a second application blindly.

When you compare offers, always look at the APRC, not just the interest rate. A bank with a 4.79% rate and high fees can end up more expensive than one with a 4.89% rate and no fees.

As a guide, from our offer: a 3-year fixed rate from 4.99%, 5 years from 5.09%, 7 years from 5.40%. The longer the fixed-rate period, the higher the rate: you're paying for certainty. Our adviser will check the exact rate for you with the banks.

Most banks now offer "CZK 0 processing" when you take out a linked product (a current account or insurance). Always ask for the APRC to be calculated. That reveals every hidden fee.

What each bank charges for a valuation is set out on Property valuation.

Compare a bank's insurance against a standalone life or accident policy, always by APRC rather than the headline rate. We cover the difference between the two figures at the same bank in the APRC glossary entry.

For younger clients with no dependants, skipping the insurance is usually cheaper. For a family repaying from a single income, the insurance can genuinely make sense.

So our adviser first asks for terms from the banks that suit your situation, goes through them with you, and then submits the application to one bank specifically. What helps most is a low LTV, meaning a low loan-to-value ratio, provable stable income, and being willing to take a current account or insurance with the bank.

Some banks can work from turnover instead of the tax base; this is called the turnover method. Each bank recognises a different percentage of turnover, and some don't offer it at all. We've set this out on Mortgage for the self-employed.

If you're in your first year on the flat-rate scheme, the usual route is to provide your last tax return from before you joined it. We cover how to show income without a tax return on Mortgage without proof of income.

You'll need: financial statements for the last 2 years, the company's tax returns, an account statement showing the dividends, the memorandum of association, and an extract from the Commercial Register.

The annual certificate of no outstanding tax debt is free via a data box. Processing takes 7-14 days.

It helps if you previously worked in the same field as an employee. Some banks will then treat it as a continuous history and be more lenient with you.

A tax return isn't the only route, either. Under the flat-rate tax scheme you don't file one, and the bank works from your bank statements instead.

What matters is your age when the loan is granted, not when you apply. If you turn 36 during the process, you'll most likely no longer qualify for the 90%. It's one reason it doesn't pay to delay applying.

Watch for a condition almost no one mentions: under the Czech National Bank's rule, one applicant under 36 is enough only if you're married or registered partners. For an unmarried couple, the exception doesn't apply.

If you're buying with New Green Savings support, the bank will count the expected grant as part of your own funds, which brings your LTV down.

A 40-year term makes sense if you want the lowest possible monthly payment. The downside: you'll pay noticeably more interest over the full term. A common compromise is a 25-30 year term combined with extra repayments.

An alternative: your parents can become co-borrowers (sharing the repayment) or guarantors (paying only if you don't). For young applicants with a short income history, this can often be what decides whether the bank approves the repayment.

This targets properties bought to let, and any further property beyond the first. If you already own and let one property but are buying your own home, the usual limits apply to you: 80%, or 90% if you're under 36.

This isn't a cap on repayment against income. The indicator that used to watch that ratio has been switched off by the Czech National Bank for owner-occupier loans since July 2023. Banks still work it out for their own purposes, but that's their own lending policy, not a binding rule. We cover this on What income a bank accepts.

For future rent (you're buying to let but aren't letting yet), banks work with a so-called market rent: an expert estimate based on comparable flats nearby. Your own idea of what you'll charge isn't something the bank will work from.

As a rough guide, an investment mortgage tends to be 0.3-0.6 percentage points more expensive than the same mortgage for your own home.

The bank isn't the only obstacle, either. Check your owners' association rules and your local council's regulations; they can restrict short-term letting regardless of what the loan agreement allows. Prague and Brno have been tightening their rules, so check the current position, not what applied last year.

Our advisers are listed in the Czech National Bank's register and sit a professional exam. Liability insurance is held by the independent intermediary; a tied agent's liability falls to whoever it's registered under, and there are far more tied agents on the register. We cover who's who on The mortgage adviser market.

If you have a dispute about how the loan was arranged, you have the right to go to the Financial Arbitrator of the Czech Republic (finarbitr.cz ↗). The proceedings are free for consumers.

The Czech National Bank reviews developments in the mortgage market at least twice a year and can switch the deactivated limits back on. Current figures are on its website; checked on 22 September 2026.

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The full procedure is in our Complaints Policy.

What this means for you:

• An intermediary must tell you how much they're paid, on request.
• Any advertisement quoting a loan's cost must include a representative example.
• The bank must give you pre-contractual information, including the APRC, well in advance.
• You can always repay early. There's no compensation for costs within three months of a new rate being announced; otherwise any compensation has a legal cap.