• Alexandra Kurbanova, real estate agent

Mortgage in Czech Republic: how to get it?

It's no secret that mortgage rates in Europe, in particular in the Czech Republic, are currently pretty low. Therefore, many people choose to finance the purchase of a real estate with a mortgage. What are the main requirements in order to get a mortgage in Czech Republic? Watch in my video or read the article below.


Do you want to get the latest articles and videos right to your email? Subscribe here.


Would you like to contact me? Press here.



An official residence permit in the Czech Republic.

Ideally if you have a permanent residency, but some banks also give mortgages to people with long term permits.


Income received in the Czech Republic.

In some cases, banks can take into account income from abroad, but this is rather an exception to the rule.

Your creditworthiness.

Banks will evaluate each potential client individually, but if we talk about a general rule, there are two formulas with which you can roughly calculate how much a bank would give you.

First formula: the amount of the mortgage should not exceed your yearly net income multiplied by 9.

Second formula: the monthly payment for all loans must not exceed 45% of your net income. Be careful - it’s indeed ALL loans, so if you are already paying CZK 5.000 per month for a car, you must add this amount to the expected mortgage payment, and all together this should not exceed 45% of your net earnings.


At least 20% of the property price as the downpayment.

One hundred percent mortgages are currently not allowed in the Czech Republic. In some cases, the bank can mortgage 90% of the value of the property, but this will be considered individually. It may also happen that the bank will finance only 70% of the value of the property, if it considers you a riskier client. This normally applies to citizens of countries that are on the bank's high-risk list.


It is important to note that the bank where you already have an account will not always offer you the best mortgage conditions. You should always compare offers from several banks.


You can visit all the banks yourself. But this does not guarantee getting better conditions. There is an excellent solution to this issue on the Czech market - these are mortgage specialists. Why is it better to use their services:


- they are free of charge for customers as banks pay for their services;


- they regularly monitor changes in the terms of how mortgages issued by different banks, and would send requests only to those banks in which the client has the greatest chance of getting a mortgage on profitable conditions;


- they will not only conduct all communication with banks for the client, but also advise on how to prepare for obtaining a mortgage. For example, apply for a mortgage immediately after the annual bonus or what can be shown as additional income;


- they do a pre-scoring of the client before submitting an official mortgage application to a particular bank, which means, they ask the bank to check the client in the registers. This is an important step, which gives almost 100% confidence that the bank will approve the mortgage for the client. If the bank finds a problem in the registers at the time of the official consideration of the mortgage, then most likely the mortgage request will be refused. And it will be almost impossible to get a new one in another bank in the near future.


 If you want to buy real estate in the Czech Republic with a mortgage, feel free to reach out to me. I will be happy to share with you contacts to trusted mortgage specialists you can rely on. 


Do you want to get the latest articles and videos right to your email? Subscribe here.


Would you like to contact me? Press here.

Мои контакты

+420 606 171 876

alexandra.kurbanova@re-max.cz

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube