Intermediary's commission

Who pays it?

The bank, and only once the deal is signed and drawn down. You pay the cost of the loan and nothing beyond it.

The law adds a limit that few people know. Neither the lender nor the intermediary has a right to remuneration or any other payment before the credit agreement is concluded. The only exceptions are taxes, administrative fees and similar charges, and reasonably incurred costs of valuing the property given as security.

In practice this means a deposit collected upfront "for processing" has no basis. A property valuation and the Land Registry fee for registering a charge over the property are a different category: these aren't remuneration, they're costs someone genuinely incurred.

What exactly does it depend on?

On the loan being drawn down. Not on the number of meetings, and not on how satisfied you are.

If the bank turns you down or you drop the plan, the intermediary gets nothing. This aligns their interest with the risk involved. Seeing it through to completion is their only route to being paid, and that same mechanic gives them no reason to advise you to wait another year before taking a mortgage.

So a useful question doesn't target the outcome, but the path to it: what exactly decided it, and why other banks dropped out of the selection.

How is it calculated?

From the loan amount. So it's higher for a larger mortgage, even though the work involved is similar.

The exact rates are agreed between the bank and the intermediary in their contract and aren't public. They differ from bank to bank, change over time, and some banks reward a new mortgage differently from taking over a loan from a competitor. That's why the structure of remuneration differs for refinancing compared with a first mortgage.

This difference doesn't show up on your repayment as a line item. It shows up elsewhere: it affects which bank is more attractive to the intermediary. That's exactly why the law gives the client the right to ask about the amount of the remuneration.

Can I ask how much they get?

Yes, and it isn't rude. The Consumer Credit Act requires the intermediary to disclose whether they receive remuneration from the lender, and to state its amount if the consumer asks.

The question that shows the most isn't "how much do you get", though. It's: does it vary between the banks you're recommending to me? "That's negligible" is not an answer.

The law also adds a ban on inducements. The intermediary may not accept remuneration that could lead them to breach their obligations towards you, including remuneration that would push them to recommend a worse loan. This is a rule the Czech National Bank supervises, not just a promise on a website.

When do I pay the intermediary myself?

For mortgages, generally never. The model where the bank pays is standard on the Czech market.

But when the client does pay the intermediary, the law won't allow taking both. Anyone who acts in the name and for the account of the consumer and takes remuneration from them for it may not, for the same loan, also act for the bank and take remuneration from it too.

So it's worth reading what you sign at the start. An intermediation agreement with remuneration from you changes the whole setup of the relationship, and it's information you must be given in advance, not only when you sign the loan.

Where do I find this out before I sign anything?

From the information the intermediary must give you with sufficient time before the intermediation itself. It isn't an optional leaflet, it's a legal duty.

It must cover who that person is and in what capacity they are registered. Also whether they provide advice as a separate service, and details of remuneration from the bank: whether they receive it, how much, or how it's calculated.

The same package covers where to turn if something goes wrong. Mortgage disputes are handled out of court by the financial arbitrator, free of charge; our own procedure is described on the complaints procedure page.

How is the commission split between the network and the individual?

The bank sends it to whoever it has a contract with, that is, the independent intermediary. They keep part of it, and the rest goes to the person who dealt with you.

The split is a matter of the contract between the network and the appointed representative, and usually rises with the volume that person brings in. The network pays for its infrastructure out of this: access to banking systems, methodology, contract checks, training and liability insurance.

Nothing changes in the cost of your loan because of this. What can show up is something else: the list of banks you're choosing from, because the network is the one with agreements with the banks.

What if the loan ends early?

Then the bank wants the commission back. This is called a claw-back, it applies in the first years of the loan, and it travels the same route the commission came by. Exactly how long is agreed between the bank and the network in their contract.

This is the second half of the story, and it's more useful to you than it looks. We cover it in the commission claw-back entry.