American mortgage
A non-purpose loan secured by a property lien.
Annuity (anuita)
Equal regular payment made throughout the entire fixation period.
Annuity payment
Equal monthly payment for the entire duration of the rate fixation.
Down payment (akontace)
Colloquial Czech term for own funds the applicant brings into a property purchase.
Cooperative apartment (družstevní byt)
An apartment you don't own directly — you're a member of a cooperative that owns the entire building, and you have the right to use a specific unit.
DSTI — Debt Service to Income (DSTI)
Ratio of total monthly loan payments (mortgage, consumer loans, credit cards, leases) to net monthly income.
DTI — Debt to Income (DTI)
Total debt of the applicant expressed as a multiple of net annual income.
Fixation period
The period during which the mortgage interest rate is unchanged.
Loan term / maturity
The total length of the mortgage.
Mortgage interest tax deduction
Interest paid on a mortgage for one's own housing can be deducted from the tax base.
100% LTV mortgage
A mortgage covering the entire property price — the applicant has no own funds.
Mortgage for young people under 36
Preferential ČNB conditions for applicants under 36 buying their first home: maximum LTV 90% instead of 80%, DSTI 50% instead of 45%, DTI 9.5× instead of 8.5×.
Mortgage loan
A long-term loan secured by a lien on real estate.
End of fixation
The moment when the agreed fixed-rate period ends.
Loan consolidation
Combining multiple loans into one — typically consumer loans, credit cards, and overdrafts are refinanced through a mortgage with a significantly lower rate.
Real estate cadaster
Czech public registry of real estate, managed by the Czech Office for Surveying.
Early repayment
Repayment of part or all of the principal earlier than contractually agreed.
Flat-rate expenses
A way for OSVČ (self-employed) to claim expenses for tax purposes — instead of actual expenses, they deduct a percentage of income (40, 60, or 80% depending on activity type).
Payment protection insurance
Insurance that covers payments in case of long-term illness, disability, job loss, or death.
Pre-mortgage loan
A short-term bridge loan provided by the bank before the lien is registered in the cadaster.
Prenuptial agreement
Notarial deed by which engaged couples or spouses arrange property relations differently from the default SJM regime.
Signing the mortgage contract
The final step of the approval process.
APR (RPSN — Annual Percentage Rate) (RPSN)
The actual annual cost of a mortgage expressed as a percentage, including interest rate, approval fee, property appraisal, account maintenance, mandatory insurance, and other costs.
Refinancing
Repaying an existing mortgage with a new mortgage from another bank — usually with a better rate or terms.
Refixation
Agreeing on a new interest rate with the existing bank after fixation ends.
Czech National Bank (ČNB) (ČNB)
The central bank of the Czech Republic, which sets monetary policy, supervises the banking sector, and since 2022 issues binding limits for mortgages (LTV, DTI, DSTI).
Loan drawing
The process by which the bank releases funds from the approved mortgage.
Net monthly income
Income after deduction of tax, social and health insurance.