In October 2026 a one-year fixed rate (fixace) is the cheapest: according to the Swiss Life Hypoindex, banks offer it at 5.42 % on average, against 5.84 % for five years (LTV up to 80 %), because since the summer they have raised rates mainly for periods of 5 years and longer. A short fixation pays off as long as rates do not rise by more than about 1 percentage point over the next few years.
On a CZK 4,000,000 mortgage over 25 years, with illustrative rates of 4.80 % for 1 year and 5.50 % for 5 years, a one-year fixation saves around CZK 138,000 in interest over five years if rates hold. If they rise by 1 pp it comes out roughly even, and only a 2 pp rise makes it about CZK 172,000 dearer.
So the choice is less about second-guessing the ČNB than about whether you could carry a higher payment if rates go up. With a reserve, and a payment of no more than about a third of income, 1–3 years makes sense. On a tight budget, take 5 years. A 7–10-year fixation is the most expensive insurance on the market today and suits only particular situations.
What each choice costs over five years
Assumptions: a CZK 4,000,000 loan over 25 years, with illustrative rates taken from the range of current offers: 4.80 % for a one-year fixation, 5.30 % for three years and 5.50 % for five. When a short fixation ends, the rate moves according to the scenario and then holds. We compare the interest paid over the first 5 years.
| Option and scenario | Initial payment | Later payment | Interest over 5 years | vs. 5-year fixation |
|---|---|---|---|---|
| 5 years at 5.50 % | CZK 24,563 | CZK 24,563 | CZK 1,045,000 | — |
| 1 year, rates stable (4.80 %) | CZK 22,920 | CZK 22,920 | CZK 907,000 | −CZK 138,000 |
| 1 year, then +1 pp (5.80 %) | CZK 22,920 | CZK 25,211 | CZK 1,061,000 | +CZK 16,000 |
| 1 year, then +2 pp (6.80 %) | CZK 22,920 | CZK 27,609 | CZK 1,217,000 | +CZK 172,000 |
| 1 year, then −1 pp (3.80 %) | CZK 22,920 | CZK 20,743 | CZK 754,000 | −CZK 291,000 |
| 3 years at 5.30 %, then unchanged | CZK 24,088 | CZK 24,088 | CZK 1,005,000 | −CZK 40,000 |
| 3 years, then +1 pp (6.30 %) | CZK 24,088 | CZK 26,285 | CZK 1,080,000 | +CZK 35,000 |
The table shows an asymmetry. The short fixation wins in two of the three scenarios and loses only if rates rise sharply. What you pay for that is uncertainty about the payment, and for a household budget that matters more than total interest.
Why are short fixations cheaper in October 2026?
The rate for a fixed period follows the price of money over the same period. At the short end that means the ČNB repo rate of 3.75 % and three-month PRIBOR at around 3.9 %; at the long end, the five-year interest rate swap, which cost roughly 4.5–4.7 % in September 2026. The market wants more for long-term money, and banks pass that on: the Swiss Life Hypoindex shows an average offer of 5.79 % in October 2026 and, at LTV up to 80 %, these averages by fixed period: one year 5.42 %, three years 5.53 %, five years 5.84 % and ten years 6.35 %. How these averages have moved since August, including above LTV 80 %, is shown in our table of Hypoindex by fixed-rate period.
Moneta, for example, cut its purpose mortgage with a one-year fixation to 4.59 % on 10 Sept 2026 (with LTV up to 80 %, an active account and insurance), while Česká spořitelna raised most of its fixations by 0.3 pp a day later. Individual offers mostly range from 4.7 to 5.8 %. Only ten-year fixations, and five-year ones above LTV 80 % (6.15 %; ten-year 6.61 %), average above 6 %. The next ČNB meeting is on 5 Nov 2026, and a repo rate rise to 4.00 % is possible but not certain.
Which fixed period suits your situation?
| Situation | Recommended fixation | Why |
|---|---|---|
| Reserve of at least six months' payments, rising income | 1–3 years | lowest rate today, frequent free window for refinancing |
| Payment above 40 % of net income, small children, one income | 5 years | certainty of the payment outweighs the higher rate |
| Expecting a large sum (inheritance, sale of another property) in 2–3 years | a fixation ending around that date | at the end of the fixed period you can repay any amount free of charge |
| Approaching retirement, want to know the payment to the end | 7–10 years | the most expensive rate, but no repricing risk when income is lower |
| Planning to sell the flat in 2 or more years | length of the fixed period does not matter | 24 months after signing the loan agreement you can repay on a sale free of charge |
The last row reflects a change since 1 Sept 2024. A planned sale used to argue for a short fixation; now the law makes repayment on a sale free 24 months after the loan agreement was signed. Choose a shorter fixation for its price and flexibility, not because you might sell.
A long fixation no longer locks you in
The usual objection to 5 years or more is “what if rates fall and I'm stuck?” Since the amendment to the Consumer Credit Act, getting out has a capped price. Outside the free windows the bank may charge 0.25 % of the amount repaid for each started year left in the fixed period, and no more than 1 % in total.
On a balance of CZK 3,500,000 that cap is CZK 35,000. If rates fell by 1 pp, a new mortgage would save roughly CZK 1,900 a month, so the fee would pay for itself in about 18 months. You can also send up to 25 % of the original loan amount free of charge every year in the month before the contract anniversary. A long fixation is insurance with a limited excess, not a trap.
When the fixed period ends
The bank must tell you the new rate at least 3 months before the fixed period ends, and within 3 months of that notice you can repay or refinance without a fee. The first offer in the letter is usually the price-list rate; show a competing offer and you will usually get a better retention rate (retenční nabídka). When it pays to go elsewhere is covered in the article on refixation and refinancing, and a timeline starting six months ahead is in End of a mortgage fixed-rate period.
To compare two offers with different rates and fixed periods, use the comparison of two mortgages. It shows the difference in the payment and in interest over the whole fixed period.
Common mistakes when choosing
- Deciding on 0.1 pp. On CZK 4,000,000, 0.1 pp makes roughly CZK 230–240 a month. Whether you can carry the payment if things go badly matters far more.
- Betting on the ČNB. Fixed rates already price in market expectations, so the meeting on 5 Nov 2026 may not move bank offers the way you expect.
- A fixed period that ends at the wrong moment. If you are planning parental leave or a job change in the year the fixation ends, pick a length that keeps the repricing away from a drop in income.
- Ignoring the conditions behind a discount. The “from” rate in a price list often applies only with insurance and an active account, so compare fixations on the same conditions.
- Treating a variable rate as a “short fixation”. A variable rate moves continuously with PRIBOR and is not cheaper today; the difference is explained in Fixed vs. variable rate.
Sources
- Swiss Life Hypoindex – advertised rates by fixed-rate period, October 2026 (7 Oct 2026)
- ČNB – monetary policy decisions, repo rate 3.75 % since 19 June 2026, meeting schedule
- ČBA Hypomonitor – average rate on new mortgages, August 2026
- Act No. 257/2016 Coll., on consumer credit, as amended with effect from 1 Sept 2024 (notice of the new rate, early repayment)