A mortgage can pass to another person, but only with the bank's consent. Legally it is a debt assumption (převzetí dluhu) under § 1888 of the Civil Code: the new debtor steps into the original debtor's place, and the creditor, the bank, has to agree. It assesses the newcomer as strictly as any new applicant, with a property valuation and a check of the credit registers.
Three situations come up in practice. Releasing a co-borrower after a divorce or break-up is common and goes through if the person who stays has enough income. A relative taking over the debt is possible, but banks decide case by case. A buyer taking over a cheap mortgage when a flat is sold is the exception, and most banks refuse. If the bank says no, the fallback is refinancing in the new debtor's name, which is free at the end of the fixed-rate period (fixace) or, once 24 months have passed since the loan agreement was signed, on the settlement of community property of spouses (SJM) after a divorce.
Three situations and what the bank looks at
| Situation | Who must consent | What the bank assesses | Realistic outcome |
|---|---|---|---|
| Releasing a co-borrower (divorce, break-up) | the bank; usually also the released co-borrower by signing an amendment | income and liabilities of the person who stays | routinely approved if the remaining borrower can carry the payment alone |
| Debt taken over by a relative or another person | the bank, the original and new debtor, the owner of the pledged property | the new debtor's creditworthiness, the purpose, often a new valuation | case by case; more often the bank proposes a new contract |
| A buyer takes over the seller's mortgage | the bank, the seller, the buyer | the buyer's creditworthiness, LTV against the new purchase price, own funds for the difference | exceptionally; most banks refuse |
Debt assumption is not the same as accession to a debt (přistoupení k dluhu, § 1892 of the Civil Code). With accession, the new person joins the debt alongside you rather than replacing you, and both of you are liable for the whole amount. Banks agree to it more readily because their risk falls, but it does nothing for someone who wants out of the mortgage.
How do you release a co-borrower after a divorce or break-up?
This is the most common reason for a “transfer”. A co-borrower who signed the loan agreement is liable for the whole debt, not half of it, and moving out or divorcing changes nothing. Until the bank signs an amendment, it can demand the payments from either of you.
The bank approves the release if the person staying meets its internal criteria alone. The ČNB scrapped its DSTI and DTI limits (DSTI as of 1 July 2023, DTI as of 1 Jan 2024), but banks still use their own thresholds, typically payments on all loans of up to 45 % of net income, or up to 50 % for applicants under 36. If one income is not enough, the bank may accept a replacement co-borrower such as a new partner or a parent.
Paying out the partner by increasing the loan is no longer an amendment but a new loan or a refinancing. Repaying the existing mortgage on the settlement of community property after a divorce is free under the Consumer Credit Act even mid-fixation, provided at least 24 months have passed since the loan agreement was signed. Property and debts in a divorce are covered in Mortgage and divorce.
When a parent, child or sibling takes over the debt
A typical case: parents once took out a mortgage on a flat for their son, and now he wants to take over both the loan and the flat. The bank then deals with three things at once:
- The new debtor's creditworthiness: proof of income, the registers and a payment-to-income calculation, as for a new application.
- Ownership of the collateral. Pledge agreements usually forbid disposing of the property without the bank's consent, and transferring the flat by gift or sale without it breaches the contract and can even lead the bank to call in the loan (zesplatnění).
- The purpose of the loan. A mortgage for your own home assumes the borrower lives there. If the new debtor lets the flat, the bank may reclassify the loan as an investment loan, for which the ČNB has recommended since 1 April 2026 an LTV of at most 70 % and DTI 7.
If the bank allows the assumption, it draws up an amendment or a new loan agreement and charges a fee from its price list. Many banks simply offer a new mortgage to repay the old one instead. That is easier for them internally, and the rate follows the current price list.
Can a buyer take over the seller's cheap mortgage?
The appeal is obvious. A CZK 4,000,000 mortgage over 25 years, fixed in 2021 at 1.99 %, costs CZK 16,935 a month; the same loan at today's 5.00 % costs CZK 23,384, which is CZK 6,449 more. In practice it rarely works:
- The bank does not have to agree, and usually does not. A loan at 1.99 % loses it money today, and it has no reason to extend one to a new client.
- The balance does not cover the price. On a flat for CZK 6,000,000 with CZK 2,800,000 outstanding, the buyer has to find CZK 3,200,000 elsewhere, and the first bank will rarely allow another bank a second lien on the same flat.
- The cheap rate lasts only until the fixed period ends. Five-year fixes agreed in 2021 are running out now, in 2026, so the advantage would last a few months at most.
Takeovers that do succeed are usually within the family, with a buyer on a strong income who has own funds for the whole difference and several years left on the fix. In an ordinary sale, expect the seller to repay the mortgage from the purchase price and the buyer to take out their own; the process is described in the article on selling a property with a mortgage.
What does not transfer with the mortgage
- The under-36 advantage. LTV 90 % depends on the applicants' age when the loan was granted, so a takeover by an older debtor may mean the bank wants an LTV of no more than 80 %.
- The interest tax deduction. Only a borrower who lives in the property can deduct interest, at most CZK 150,000 a year for mortgages from 1 Jan 2021. After a takeover the new debtor claims it, and only from the date they became the debtor.
- Payment protection and life insurance. Both are personal, so the new debtor takes out new cover, with a new health questionnaire and a price based on their age.
- Rate discounts for other products. If the rate includes a discount for an account or insurance with the bank, the new debtor keeps it only by taking out the same products.
What does a transfer cost and how long does it take?
| Step | Usual duration | Cost |
|---|---|---|
| Application and proof of the new debtor's income | 1–2 weeks | CZK 0 |
| Assessment by the bank | 2–4 weeks from complete documents | contract amendment fee per the bank's price list |
| New property valuation (if the bank wants one) | a few days | CZK 3,000–6,000 |
| Change of owner in the land registry (katastr), if the flat is transferred | no sooner than 20 days after the owner is notified of the plomba (pending-change flag) | CZK 2,000 per application for registration |
| New property insurance with an insurance assignment (vinkulace) | days | annual premium |
If only the debtor changes and the owner of the collateral stays the same, the land registry is not involved and the lien carries on. Allow 1–2 months overall, much as for a new mortgage.
If the bank says no, refinance in the new name
A refusal is not a dead end. The new debtor takes out their own mortgage at any bank and repays the original one with it; the old lien is deleted and a new one registered. Timing decides what it costs:
- at the end of the fixed period repayment is always free. The bank must announce the new rate at least 3 months in advance, and you can repay without a fee within 3 months of that notice;
- on the settlement of community property after a divorce it is free if at least 24 months have passed since the loan agreement was signed;
- on the sale of the flat it is likewise free once at least 24 months have passed since signing;
- otherwise the bank may charge at most 0.25 % of the amount repaid for each started year left in the fixed period, and 1 % in total.
The new debtor's payment, and the loan they can carry, can be worked out in the payment calculation and the How much can I borrow calculator.
Sources
- Act No. 89/2012 Coll., the Civil Code, § 1888–1891 (debt assumption) and § 1892 (accession to a debt)
- Act No. 257/2016 Coll., on consumer credit, as amended with effect from 1 Sept 2024 (early repayment)
- ČNB – macroprudential policy: LTV limit, deactivation of DSTI and DTI, recommendation for investment loans from 1 April 2026
- Act No. 586/1992 Coll., on income taxes, § 15 (deduction of interest on a housing loan)