A Czech mortgage needs own funds (vlastní zdroje) of at least 20 % of the bank's valuation, or 10 % if one applicant is under 36, plus money for the purchase costs. For a flat costing CZK 4,000,000 that means at least CZK 800,000 in October 2026, or CZK 400,000 under 36. That follows from the only binding ČNB (Czech National Bank) limit, LTV 80 % or 90 %, and it is the same at every bank.
In practice, have more ready: roughly CZK 1.0–1.1 million. There are two reasons. The 20 % is calculated from the bank's valuation (odhad), not the purchase price, and in an overheated market (older flats +14 % year on year in Q2 2026) the valuation often comes in below the price you agreed with the seller. You pay the difference. And the mortgage does not cover the costs of buying, such as the valuation, land registry fees, any agent's commission, moving and the first year of property tax, which add another 5–8 % of the price.
How big a deposit do you need, by property price?
The table assumes the bank's valuation matches the purchase price. The “realistic total” column adds 5 % for costs to the 20 % deposit, the lower end of what you should plan for.
| Property price | Own funds 20 % (LTV 80 %) | Own funds 10 % (under 36) | Costs 5–8 % | Realistic total (20 % + 5 %) |
|---|---|---|---|---|
| CZK 3,000,000 | CZK 600,000 | CZK 300,000 | CZK 150,000–240,000 | CZK 750,000 |
| CZK 4,000,000 | CZK 800,000 | CZK 400,000 | CZK 200,000–320,000 | CZK 1.0m |
| CZK 5,000,000 | CZK 1,000,000 | CZK 500,000 | CZK 250,000–400,000 | CZK 1.25m |
| CZK 7,000,000 | CZK 1,400,000 | CZK 700,000 | CZK 350,000–560,000 | CZK 1.75m |
Under a ČNB exception, banks may go above 80 % LTV for at most 5 % of the volume of new loans per quarter. They use it for individual creditworthy clients slightly over the limit, not as a standard product, so do not count on it. To stand a chance you need above-average income and a clean credit history.
The average new mortgage reached a record CZK 4.59 million in August 2026. At 80 % LTV that corresponds to a property worth CZK 5.7 million and own funds of CZK 1.15 million, which is what the average buying household puts on the table today.
Your own funds are only one limit; the other is income. The table in our guide on how banks count your income shows the cap for net incomes from CZK 35,000 to 150,000. For the other mortgage requirements, from documents to age, see our first-time buyer guide.
Why the bank works from the valuation, not the price
The bank lends against collateral, so what it cares about is what the property would fetch if you stopped paying. It has a valuation done (giving the collateral value, zástavní hodnota) and calculates LTV from that. For flats in cities an online valuation, free or for a few hundred crowns, is often enough; for houses and unusual properties a valuer visits and you pay CZK 3,000–6,000.
When the valuation comes in below the purchase price, the price stays where it is and the loan shrinks:
- Purchase price CZK 5,000,000, valuation CZK 5,000,000: loan CZK 4,000,000, own funds CZK 1,000,000.
- Purchase price CZK 5,000,000, valuation CZK 4,700,000: loan CZK 3,760,000, own funds CZK 1,240,000. The CZK 240,000 difference has to be found before you sign the purchase agreement.
It happens most often with properties priced above comparable sales nearby, new builds in areas with no sales history, unusual layouts and flats with legal defects (easements, unresolved ownership of the land under the building). In a year of fast-rising prices valuers are more cautious than the market, because they work from completed sales that are several months old.
The protection is simple. Have the valuation done before you sign the reservation agreement (rezervační smlouva), or negotiate a clause that lets you withdraw from the reservation without penalty if the bank does not approve the loan in the agreed amount. Otherwise the reservation fee, typically tens to hundreds of thousands of crowns, is the first part of your own funds you can lose.
Costs the mortgage does not cover
None of these items is covered by the loan; all of them come out of your own money. One piece of good news: the property acquisition tax (daň z nabytí nemovitých věcí, 4 % of the price) was abolished in 2020, so buyers no longer pay it.
- Valuation: CZK 3,000–6,000, often free online for flats.
- Land registry (katastr nemovitostí): CZK 2,000 to register the lien and another CZK 2,000 to register ownership. These are two separate applications, and the registry may approve each one no sooner than 20 days after notifying the owner of the pending-change flag (plomba).
- Estate agent's commission, paid by whoever signed with the agency. If that is you, it runs to a few percent of the price and is the largest item here.
- Legal services and escrow: the purchase agreement and attorney or notary escrow (advokátní / notářská úschova) of the purchase price, priced according to the amount and scope of service.
- Bank fees for arranging the loan (CZK 0 at many banks, thousands at others), for drawdown and for the account. Always compare the APR (RPSN), not just the rate.
- Property insurance, a condition of drawdown, with the annual premium paid in advance.
- Annual property tax (daň z nemovitých věcí), paid by the owner every year by the end of May and doubled since 2024.
- Moving, furnishing and minor repairs, the item people forget most often, which in an older flat can easily reach hundreds of thousands.
With a new build from a developer, VAT is included in the price (12 % for flats up to 120 m² and houses up to 350 m², otherwise 21 %), and legal services usually are too. Budget instead for client changes and a kitchen, which the price does not include.
Where the deposit can come from, and how to prove it
- Your own savings and investments. This is the simplest route; the bank wants to see where the money came from (bank statements, confirmation of a sale of securities).
- A gift from parents or grandparents. The bank requires a deed of gift even between relatives. Gifts from relatives in the direct line are exempt from income tax, so nothing is paid on them (only exempt income above CZK 5 million has to be reported to the tax office). It must be a genuine gift, though: a family loan is a commitment the bank will count against your income.
- Building savings (stavební spoření, a state-supported savings scheme). Money saved after the lock-in period is clean own funds. If the contract is still running, you can take a building savings loan to top up the mortgage, but the bank counts its payment towards your income limit.
- Selling another property or a car. If a sale is under way, banks accept a signed purchase agreement and escrow. With property, watch for income tax on the sale (exempt after 10 years of ownership for property acquired from 2021, after 2 years of living there, or if the money goes into your own housing).
- Additional collateral (dozajištění) with a second property instead of cash. Your parents' flat is pledged as well and LTV is calculated from both properties together; see our article 100 % LTV mortgage.
- Your own plot. When you build a house, its value counts as own funds: with a plot worth CZK 1.2 million and a CZK 4.8 million build, you have met the 20 % without cash.
A consumer loan or a credit card does not belong on this list. The bank will see it in the register and deduct its payment from your income, and the mortgage will shrink by more than you borrowed. Concealing such a loan is also a breach of the loan agreement.
Wherever the money comes from, the bank will ask how it reached you. Under the Consumer Credit Act it must assess creditworthiness, and anti-money-laundering rules require it to know the origin of the funds. In practice that means:
- bank statements for the last 3–6 months showing how the money built up or where it came from;
- a deed of gift for a gift, plus the donor's statement if the amount exceeds the bank's usual threshold;
- the sale agreement and escrow confirmation for money from selling assets;
- for cash kept at home, an explanation that holds up. Paying in hundreds of thousands in banknotes a week before you apply is a cue for the bank to ask more questions.
You document own funds with the application, but they only need to be available at drawdown: the bank releases its loan after your part of the purchase price has gone to the seller or into escrow. Set the payment schedule in the purchase agreement accordingly.
Is it worth putting down more than 20 %?
Every extra crown lowers the payment and the interest, and often the rate too, since many banks tie their best price-list rate to LTV up to 80 % (Moneta, for example, at 4.59 % with a one-year fixation in October 2026). On a CZK 4,000,000 flat, the difference between borrowing CZK 3.6 million (LTV 90 %) and CZK 3.2 million (LTV 80 %) at 5.00 % over 30 years is CZK 2,148 a month and CZK 373,000 in interest over the term.
One exception to “the more, the better”: do not put every last crown into the property. A reserve of several months' payments protects you better against losing your income than a slightly lower LTV does, and you can repay up to 25 % of the loan amount a year free of charge with an extra payment in the month before the contract anniversary. See what different amounts of own funds get you in the How much can I borrow calculator.
Sources
- ČNB – upper LTV limit 80 % (90 % under 36), 5 % volume exception; DSTI and DTI deactivated in 2023/2024
- Act No. 257/2016 Coll., on consumer credit (creditworthiness assessment, early repayment of up to 25 % of the loan amount per year)
- Act No. 586/1992 Coll., on income taxes, § 4 (exemption of income from the sale of property) and § 10(3)(c) (gratuitous income from relatives)
- ČBA Monitor – property prices Q2 2026 (older flats +14 % year on year) and Hypomonitor August 2026