When is an extra payment free?
- At the end of the fixation, and within 3 months of being told the new rate.
- Up to 25 % of the original loan amount each year, paid in the month before the contract anniversary.
- When you sell the home, once 24 months have passed since you signed the loan.
- Otherwise the bank may charge at most 0.25 % for each started year to the end of the fixation, 1 % in total.
More on when an extra payment is free, and on whether to repay the mortgage or invest.
Your current mortgage
Enter the current balance and loan parameters.
Early mortgage repayment in the Czech Republic
Making an extra payment toward your mortgage principal is one of the simplest, highest-leverage things you can do with surplus cash. Every koruna you put toward principal early removes future interest from the bank's hands.
When you can prepay free of charge
By Czech law, you can prepay at the end of every fixation period with zero penalty, and also within 3 months of being told the new rate. The law also lets you repay up to 25 % of the original loan amount each year free of charge if you pay within the month before the contract anniversary. Outside these windows, banks may charge at most 0.25 % of the prepaid amount for each started year left until the end of the fixation, 1 % in total.
Shorter term vs. lower payment
After making an extra payment you have two options: shorten the loan term (default — same monthly, fewer years, maximum interest savings) or lower the monthly payment (same term, lower payment, less savings). Shortening always saves more.
Frequently asked questions
Can I prepay my mortgage anytime without a fee?
Free prepayment is guaranteed by law at the end of every fixation period (and within 3 months of being told the new rate), for up to 25 % of the original loan amount each year (paid within the month before the contract anniversary), on a sale of the property or a divorce settlement once 24 months have passed since signing, and after death, long illness or disability that substantially reduces the ability to repay. Outside these windows banks can charge at most 0.25 % of the prepaid amount for each started year left until the end of the fixation, 1 % in total.
How does the bank reduce the loan after an extra payment?
Default behavior is to keep the monthly payment the same and shorten the loan term — that maximizes interest savings. You can also request "lower the payment, keep the term" — but it saves less in total interest.
Is it worth paying off the mortgage in full?
From a pure interest standpoint, yes. But always keep an emergency fund (3–6 months of living costs). A mortgage is the cheapest debt you'll ever have — don't drain your last reserves to clear it.
When should I notify the bank about an extra payment?
Most banks require notification at least 30 days in advance, in writing. Check your contract or the bank's online portal. Some banks allow extras directly through internet banking with same-day processing.
Planning to refinance?
Put your current mortgage next to a new offer and see your savings.