Choose a mortgage in a fixed order: first the payment you can carry even after the fixed-rate period ends, then the loan parameters, and only then the bank. Compare the offers in koruna over the whole fixed period, not by the headline rate. The lowest rate wins less often than you would expect.
The average rate on mortgages actually signed in August 2026 was 5.00 % (ČBA Hypomonitor), while bank offers in October 2026 averaged 5.79 % according to Swiss Life Hypoindex. Individual offers range from 4.7 to 5.8 %. On a CZK 4,000,000 mortgage over 25 years, that is the difference between a payment of CZK 22,690 and CZK 25,285, and roughly CZK 217,000 in interest over five years. That is what choosing carefully is worth.
What payment can you carry after the fixation ends?
A bank lends to you up to two ceilings, and only one of them is binding: the ČNB cap on LTV (loan-to-value), which means the loan can be at most 80 % of the property's value (90 % if at least one applicant is under 36). The bank sets the second ceiling itself. Its usual internal threshold is that payments on all your loans must not exceed 45 % of net income (50 % under 36). That is bank policy, not a legal limit. The other mortgage requirements for 2026, from the deposit to documents and age, are set out in our first-time buyer guide.
Set your own ceiling lower than the bank's. Work out the payment at today's rate and again at a rate 1 pp higher, because in three or five years you will be negotiating the rate again. For CZK 4,000,000 over 25 years that means CZK 23,384 at 5.00 % and CZK 25,772 at 6.00 %. At the 45 % threshold, these payments correspond to a net income of roughly CZK 52,000 and CZK 57,300. If you could not cover the higher payment from income or savings, the loan is on the edge, and no rate will fix that.
The How much can I borrow calculator shows what banks will realistically lend you. Then get the mortgage pre-approved (předschválení). It takes a few days, and only after that does it make sense to sign a reservation agreement.
What every offer must have in common
Offers can only be compared if the bank is the one thing that differs. Ask for 2–3 written offers based on the same brief:
| Parameter | Why it matters | What to ask |
|---|---|---|
| Loan amount and LTV | banks price in LTV bands; up to 80 % is usually cheaper | which band applies to my amount and valuation |
| Fixed-rate period (fixace) | in October 2026 rates differ by tenths of a pp depending on the fixation | rates for 1, 3 and 5 years side by side |
| Term | a longer term lowers the payment, not the price | payment and interest for both 25 and 30 years |
| Discount conditions | the “from” rate often applies only with an account and insurance | how much the rate rises if I stop meeting a condition |
| Fees | arrangement, valuation and administration fees feed into the APRC | the APRC and a list of all fees |
| Contract flexibility | extra repayments beyond the legal minimum, drawdown deadline | how much I can repay free of charge and by when I must draw the money |
As soon as one offer differs in, say, the length of the fixation or the insurance, the comparison stops being fair. Keep the brief identical and try variations only with the bank you end up choosing.
How do you compare mortgage offers in koruna?
What decides is the total of interest and all other costs over the fixed period. Once that period ends the rate changes anyway, so counting on a discount 25 years ahead makes no sense. The APRC (RPSN) is a good first filter, but it assumes the same rate for the whole term, which is not how a mortgage with a fixed period works. Our article APRC vs. interest rate explains the difference.
Three model offers for CZK 4,000,000 (25-year term, 5-year fixation, interest calculated with the annuity formula over the first 60 months):
- Bank A: 5.19 %, no conditions and no fees. Payment CZK 23,829, interest over the fixation CZK 983,600.
- Bank B: 4.89 %, but only with the bank's life insurance at CZK 800 a month. Payment CZK 23,128, interest CZK 924,600, premiums CZK 48,000, total CZK 972,600.
- Bank C: 4.99 % with an arrangement fee of CZK 15,000. Payment CZK 23,360, interest CZK 944,300, total CZK 959,300.
The lowest rate (B) finished second, CZK 13,300 behind C. If you would take out the life insurance even without a mortgage, though, the premium is not an extra cost and the order flips. Count only what you would not be paying anyway.
The Compare two mortgages calculator puts two offers side by side. With written offers in hand you can start negotiating, as described in How to negotiate a lower mortgage rate.
Pick the fixation your budget can survive
In October 2026 a one-year fixation is the cheapest, because since the summer banks have mainly raised rates on fixations of 5 years or more. A cheaper rate today does not mean a cheaper mortgage over five years. Take a short fixation only if your budget can absorb a 2 pp rise in the rate. On CZK 4,000,000 over 25 years, that is a jump from CZK 23,384 to CZK 28,272 a month. If it cannot, a five-year fixation is the more sensible choice, even though it costs more.
Variable rates are rarely taken in Czechia, and in October 2026 they are not cheaper. The scenarios are worked through in Which fixed-rate period to choose and in our article on fixed vs. variable rates.
Before you sign
- Use the 14 days to think it over. Before you sign a housing loan agreement, the bank must give you a reflection period in which it may neither change nor withdraw its offer (§ 111 of the Consumer Credit Act). Once you have signed, there is no easy way out of a mortgage.
- Read the conditions attached to the rate discount. Look for how much the rate goes up, and from when, if you change employer, move your salary to another bank or cancel the insurance.
- Check the drawdown deadline and conditions: what you must provide before the money is released, and by when, so the offer does not lapse.
- Check the rules on extra repayments. The law sets a minimum: once a year you can repay up to 25 % of the original loan amount free of charge, in the month before the contract anniversary. Some banks allow more.
What goes wrong most often when choosing, and what it costs, is summed up in The 15 most common mortgage mistakes.
Sources
- ČBA Hypomonitor – average rate on new mortgages, August 2026
- Swiss Life Hypoindex – advertised rates, October 2026
- ČNB – LTV cap, deactivation of DSTI and DTI
- Act No. 257/2016 Coll., on consumer credit, § 111 (reflection period), § 117 (early repayment), § 133–134 (APRC)