American mortgage — non-purpose loan against property
American mortgage (americká hypotéka) is a non-purpose loan secured by real estate. Unlike a regular mortgage, you don't have to use it for housing — you can use the money for anything.
How it differs from a regular mortgage
- No purpose check — bank doesn't ask what you'll use the money for
- Higher rate — typically 1.5–3 % above standard mortgage rate
- Lower max LTV — usually 60–70 %, not 80 %
- Shorter term — up to 20 years typically, not 30
- Same security — your property, lien at registry
When American mortgage pays off
- Funding business — cheaper than business loan, no business plan required
- Investing in another property — leverage your existing equity
- Education, medical bills — large one-off expenses, lower rate than consumer loan
- Debt consolidation — combine multiple high-rate debts into one cheaper loan
Risks
You're putting your home on the line for non-housing purposes. If the venture fails (business, investment), you can lose your home. Use only for purposes where:
- You have a clear repayment plan
- You can afford payments even if the venture fails
- The expected return on use of funds beats the loan rate
FAQ
What's the typical interest rate for American mortgage?
In 2026, around 6–8 %, vs. 4.4–5 % for regular mortgage. Higher because the bank has less control over how you use the funds.
Can I take American mortgage if I already have a regular mortgage on the same property?
Yes, if combined LTV is below the bank's limit (typically 70 %). The new loan goes second-lien behind the existing mortgage.
Is American mortgage tax-deductible interest?
Only if used for housing-related purposes. For business or other purposes, interest is not deductible from personal income.