Annuity (anuita)
An annuity (anuita) mortgage is repaid in equal monthly payments, and the word also means the payment itself. Each annuity contains interest and principal repayment (úmor). Interest dominates at the start; as the debt shrinks, the principal share grows. The vast majority of Czech mortgages are repaid this way, and the annuity changes only with a new rate, typically when the fixed-rate period ends, or after an extra repayment.
Example
A CZK 4,000,000 mortgage over 25 years at 5.00 % has an annuity of CZK 23,384. In the first month CZK 16,667 of it goes on interest and only CZK 6,717 on principal. Over the first 5 years you pay about CZK 946,000 in interest and cut the debt by just CZK 457,000, which leaves roughly CZK 3,543,000 outstanding.
In practice
The repayment schedule from your bank shows how much of each annuity reduces the debt. That helps when you weigh up an extra repayment: the sooner you send it, the more interest it saves. Afterwards you choose whether the bank lowers the annuity or shortens the term. A shorter term usually saves more interest, while a lower annuity frees up the monthly budget.
How it differs
Principal repayment is only the part of the annuity that reduces the debt. The alternative to an annuity is repaying with constant principal: the debt falls in equal steps and the payment shrinks over time, but banks rarely offer it on mortgages. An annuity payment is the specific amount in koruna, whereas annuity refers more to the principle.
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