No bank in Czechia will give you a mortgage with no proof of income at all. Since 2016 the Consumer Credit Act has required every lender to check that you can repay, and a contract signed in breach of that duty is invalid. A low LTV or first-rate collateral does not replace the income check.
An advert for a mortgage “without proof of income” therefore hides one of three things: a bank that accepts a document other than a tax return or payslip, an American mortgage (americká hypotéka), where income is checked just the same, or a non-bank loan secured on property. The last one is far dearer. On CZK 2,000,000 over 10 years, a rate of 12 % costs you roughly CZK 898 thousand more in interest than 5 %.
Why must the bank check your income?
The duty sits in § 86 of the Consumer Credit Act, in force since December 2016. A lender must assess the consumer's creditworthiness from information about their income and outgoings, and may lend only if there is no reasonable doubt that the loan will be repaid.
A lender that ignores this duty ends up with an invalid contract under § 87, and the consumer repays only the principal, at a pace that matches their means. The bank would lose all its interest, so it doesn't take the chance.
Nor is the check a formality. The bank looks you up in the BRKI, NRKI and SOLUS credit registers, compares your documents with your bank statements and can verify a self-employed applicant's tax return. False information in an application is credit fraud under § 211 of the Criminal Code.
A low LTV changes nothing here. Even if you borrow only half of what the flat is worth, the bank must know what you will repay it from.
What is sold as a mortgage without proof of income?
- A different document, not none. For self-employed applicants (OSVČ) with a short track record or a low tax base, some banks look at turnover on the account; for employees, some accept statements showing the incoming salary instead of the employer's confirmation. You still prove your income, only by another route, and the bank usually wants a lower LTV or lends less.
- An American mortgage. Money for any purpose, secured on property, but creditworthiness is assessed exactly as for an ordinary purpose mortgage and the rate tends to be higher. See American mortgage for the details.
- A business loan from a non-bank company. Borrow on your business ID (IČO) for business purposes and it is not consumer credit, so Act No. 257/2016 Coll. no longer protects you. The statutory cap on early repayment fees disappears, and so does the reflection period before signing. The lender looks mainly at the value of the collateral.
- A loan from a private investor secured on your property. The lender drafts the contract, rates and penalties are usually high, and if you fall behind you can lose the property fast.
A non-bank provider of consumer credit needs a licence from the ČNB (Czech National Bank). Before you sign anything, look the company up in the register of regulated entities on the ČNB website and check that the contract treats you as a consumer.
You have an income, it is just harder to document
Most people searching for a mortgage without proof of income do have an income. It just doesn't come on a payslip. For each of these situations there is a document banks know how to read:
| Situation | How to prove the income | More detail |
|---|---|---|
| Self-employed with a low tax base | a return with a higher tax base for the following year; at some banks, turnover on the account | Mortgages for the self-employed |
| Company director paid in dividends | the general meeting's resolution, a statement showing the profit share paid out | Mortgage for company directors |
| Salary from abroad | employment contract, payslips, the annual tax certificate from the employer's country | Mortgage with foreign income |
| Rental income | a tax return with income under § 9, tenancy agreements | Mortgage for an investment property |
| Parental allowance, pension | a decision of the labour office or the Czech Social Security Administration (ČSSZ), bank statements | Mortgage on maternity and parental leave |
| New job, probation period | the employer's confirmation; some banks count the income after 3 months | Mortgage during probation |
Someone living off savings has a harder time. Banks prefer regular income such as rent or dividends backed by a tax return, and a balance on an account is not income. What remains is a bigger deposit and a smaller loan, or a co-applicant.
What borrowing outside the banks costs
Worked out on CZK 2,000,000 over 10 years (annuity repayments; bank rate 5.00 %, the non-bank loan assumed at 12 %, fees left out):
- Bank at 5.00 %: repayment CZK 21,213, interest over 10 years CZK 545,572.
- Non-bank loan at 12 %: repayment CZK 28,694, interest CZK 1,443,303.
That is CZK 7,481 a month more and CZK 897,730 over the whole term. If your income isn't enough for a bank mortgage, a repayment a third higher will be an even bigger problem.
Non-bank offers also tend to come with a shorter term, an arrangement fee and a contractual penalty for late payment. For consumer credit, the APRC (RPSN) shows the total cost better than the rate does. With a business loan the lender doesn't have to state it, so do the sums yourself, for example in the mortgage comparison calculator.
Our article on the non-bank mortgage explains who may grant one, how to check the lender in the ČNB register and which contract terms are warning signs.
When your income really falls short
- Add a co-applicant. A parent or partner with documented income raises the ceiling and doesn't have to become a co-owner.
- Don't expect miracles from a guarantor (ručitel). Banks now more often want a co-applicant, whose income goes into the calculation.
- Borrow less. A bigger deposit or a cheaper property means a smaller repayment that your documented income can carry.
- Pay off small loans and cancel unused cards. Every CZK 1,000 of monthly repayments takes roughly CZK 186 thousand off your ceiling at 5.00 % over 30 years.
- Wait a year. A self-employed applicant with a better tax return, or an employee past probation, gets a standard mortgage at around 5.00 %, the average rate on new mortgages in August 2026.
What to do after a refusal is set out step by step in What to do when your mortgage is rejected.
Sources
- Act No. 257/2016 Coll., on consumer credit, § 86 (assessment of the consumer's creditworthiness), § 87 (consequences of breaching the duty)
- Act No. 40/2009 Coll., the Criminal Code, § 211 (credit fraud)
- ČNB – consumer protection on the financial market