Mortgage fees in Czechia: what you pay on top of interest

One-off fees on a Czech mortgage typically come to CZK 4,000–10,000 in October 2026, provided the bank does not charge an arrangement fee (poplatek za vyřízení), and most banks now waive it to win clients. Where it is charged, it is usually up to 0.5 % of the loan, another CZK 20,000 on a CZK 4,000,000 mortgage.

On top of that you pay for the valuation (odhad), which costs CZK 3,000–6,000 or is often free online for flats, an administrative fee of CZK 2,000 to register the lien in the land registry (katastr nemovitostí), the same again to register ownership, and every year for property insurance assigned (vinkulace) to the bank.

Proportion matters more than the list, though. On a CZK 4,000,000 mortgage over 25 years at 5.00 %, you pay roughly CZK 198,000 in interest in the first year alone and CZK 3,015,000 over the term. Each tenth of a percentage point on the rate is about CZK 234 a month, or over CZK 14,000 across a five-year fixed period. All the fees together come to less than a 0.3 pp difference on the rate. They are still worth knowing, because this is exactly where banks claw back what they give away with an advertised “from” rate. How much money you need besides the fees, and what else the bank requires, is set out in our first-time buyer guide.

What fees do you pay on a Czech mortgage?

Arranging the loan costs CZK 0 at most banks and up to 0.5 % of the loan where a bank charges for it. With the valuation and two land registry applications, the one-off total is usually CZK 4,000–10,000. The state charges CZK 2,000 for each land registry application, the valuation costs CZK 3,000–6,000 unless the bank values a flat online, and the rest comes from the bank's fee schedule or from third parties such as the escrow agent.

One item is missing from the table because it no longer exists: the property acquisition tax (daň z nabytí nemovitých věcí, 4 %) was abolished in 2020. Annual property tax (daň z nemovitých věcí) is not a mortgage fee, but it has roughly doubled since 2024. The owner pays it by 31 May; above CZK 5,000 it can be split into two instalments, due by 31 May and by 30 November.

Why the arrangement fee is usually zero

At Czech banks the arrangement fee is mainly something to negotiate. The price list often shows 0.5 % of the loan or a fixed amount, but it drops out of the offer if you take insurance with the mortgage, move your account, or come through an adviser during a promotion. If the bank insists on it, convert it into the rate. CZK 20,000 on a CZK 4,000,000 mortgage spread over a five-year fixation is CZK 333 a month, roughly 0.14 pp on the rate. An offer of “5.09 % with no fee” is thus practically the same as “4.95 % with a 0.5 % fee”, and the APR (RPSN) makes exactly that comparison for you.

A mortgage adviser (hypoteční poradce) should not charge you a brokerage fee, because the bank pays them a commission. If one does ask for a fee, it should be clear in advance what service beyond brokerage it covers, and what going to the bank directly would cost you.

The valuation works the same way. Some banks reimburse it during a promotion, and for flats it is free online, so it is the first thing to ask about when the banker says there is no room for a discount.

Which insurance is compulsory and which lowers the rate

Every bank makes property insurance (pojištění nemovitosti) a condition of drawdown. The collateral must be insured against natural hazards and the payout assigned to the bank, so that the bank gets the money if the property is damaged. You choose the insurer. The sum insured is based on the reproduction (rebuild) value of the building, not the purchase price, so for a flat in Prague, where land and location make up much of the price, it comes out noticeably lower than the price. The bank checks that the sum matches the value of the building in the valuation.

Life (risk) insurance and payment protection insurance are not compulsory. Banks give a rate discount of a few tenths of a percentage point if you take them with their insurer, and this is where people most often miscalculate. A 0.2 pp discount on CZK 4,000,000 over 25 years is CZK 464 a month (CZK 22,920 instead of CZK 23,384). If the premium costs more than that, you are paying more for the insurance than you save on the rate. That is fine if you want the cover; if you only want the discount, compare it with an offer outside the bank. Cancel the insurance later and the bank withdraws the discount, so the rate goes up.

Whether payment protection insurance is worth having is covered in a separate article, Payment protection insurance.

What the APR (RPSN) includes and what it does not

The APR (RPSN, roční procentní sazba nákladů) expresses the total cost of the loan as an annual percentage. Under the Consumer Credit Act it includes interest and every cost you have to pay that the bank knows about: the arrangement fee, loan account maintenance, the valuation if it is mandatory, and insurance if it is a condition of the offered rate. It leaves out notary or attorney costs, administrative fees for registering ownership, penalties for breach of contract, and insurance you take out voluntarily outside the conditions of the offer.

That has two consequences. The APR is always higher than the rate, even if the bank charges nothing: at 5.00 % with monthly repayments, simply converting the interest to an annual basis gives an APR of 5.12 %. And two APRs can only be compared for the same amount, term and fixed period. Why the rate and the APR are different numbers is explained in our article APR vs. interest rate.

Before you sign, the bank must give you pre-contractual information on the ESIS form (ESIP), with the APR and a breakdown of fees, and for 14 days it may not change or withdraw the proposed terms (the reflection period, doba na rozmyšlenou, § 111 of the Consumer Credit Act). The statutory right to withdraw from an already signed contract within 14 days applies only to loans other than housing loans, not to mortgages. So raise any item the banker did not mention before you sign, not after.

What does a CZK 4,000,000 mortgage cost besides interest?

This is the order in which to negotiate: the rate first, then the discount conditions (insurance, account), and the fees last. A bank that waives CZK 6,000 for the valuation and gives you a rate 0.2 pp higher has come out ahead. Recalculate your own numbers in the payment calculation.

Mistakes people make when adding up the costs

1. Comparing the “from” rate instead of the APR and total amounts. The price-list rate applies to a client with insurance, an account and LTV up to 80 %. Your number is in the offer and the ESIS, not on a billboard.
2. Taking insurance only for the discount. When the premium exceeds the rate discount, you are buying expensive insurance, and if you cancel it the rate jumps.
3. Setting the sum insured by the purchase price. Over-insurance raises the premium for nothing, and under-insurance cuts the payout if something happens. The sum should match the cost of rebuilding.
4. Forgetting future fees. Releasing a co-borrower after a break-up, changing the collateral when you sell, an extra payment outside the contract anniversary: each has a price in the fee schedule. Repayment is free at the end of the fixed period, up to 25 % of the loan amount a year in the month before the contract anniversary, within 3 months after the new rate is announced, and on sale of the property if at least 24 months have passed since the loan agreement was signed.
5. Leaving out the purchase costs the mortgage does not cover. Own funds of 20 % (10 % under 36) are the minimum, and the reservation fee, escrow, moving and the first property tax come on top. The mortgage finances the property, not the transaction around it.