Mortgage and children — what changes when you have kids

Having children is a major life event that changes household economics — and mortgage qualification. Banks have specific rules for families.

Children in DSTI calculation

Banks include child-related expenses in your DSTI calculation:

• Subsistence minimum per child (cca 3,000–4,000 CZK/month per child, varies by age) — automatically deducted from disposable income
• Childcare costs — sometimes counted, sometimes not (varies by bank)

Result: family with 2 kids qualifies for ~600,000 CZK less mortgage than equivalent income without kids.

Maternity leave income

Maternity benefits (mateřská) and parental allowance (rodičovský příspěvek) count as income — but at a discount:

• Mateřská — 70 % of pre-pregnancy income for 28 weeks. Banks usually count this fully.
• Rodičovský příspěvek — 350,000 CZK total, paid over 2–4 years. Banks count it but assess against the time horizon (only stable income beyond a year forward typically).

Apply before kids if possible

Strategically: apply for mortgage before first child if possible. Two earners + no kids = max DSTI. After kids: one income (or reduced income on parental leave) + child expenses = significantly less mortgage.

If kids already arrived: apply when both parents back to work, even if one returned recently.

Under-36 limit + having kids

Under-36 LTV/DSTI/DTI relaxed limits apply regardless of kids. So a 33-year-old with two kids still gets the relaxed limits. Combine the relaxation with strategic timing of application for maximum borrowing capacity.

FAQ