Rate fixation (fixace)
Rate fixation (fixace) is the bank's commitment not to change your mortgage rate for an agreed period, however market rates move. Banks secure funding for that period at a price derived from interest rate swaps, which is why each length of fixation is priced differently. The payment does not change during the fixed-rate period. Repaying early outside the statutory exceptions may carry a fee.
Example
A client with a CZK 4,000,000 loan over 25 years has fixed at 5.00 % and pays CZK 23,384. Suppose he had no fixation and the rate rose to 5.80 %, roughly the level of the October Hypoindex. His payment would then be CZK 25,285. Until it ends, the fixation keeps his budget CZK 1,901 a month lower.
In practice
At the end of a fixation you can repay any part of the principal without a fee, refix with your bank or refinance elsewhere. The bank must announce the new rate at least 3 months in advance. During the fixation you can repay up to 25 % of the original loan amount each year without a fee, in the month before the contract anniversary. Outside that window the bank may charge no more than 0.25 % for each started year of fixation remaining, up to 1 % in total. How to choose by budget is covered in which fixed-rate period to choose.
How it differs
A variable rate moves with PRIBOR, and a loan on one can be repaid at any time without a fee, but few banks offer it. The fixation period is the length of the commitment. Refixation means agreeing a new fixation with the same bank, while refinancing means moving to another bank, usually at the end of a fixation, when it costs nothing.
Frequently asked questions
What is a fixed-rate period (fixace)?
The period for which the bank guarantees your mortgage rate, and with it your payment: 1 to 10 years at Czech banks. When it ends, the bank offers a new rate and you can repay, refix or move to another bank without a fee.
How long should you fix a mortgage rate?
It depends on how big a rise in your payment you could carry. In October 2026 the Swiss Life Hypoindex averages were 5.42 % for one year, 5.53 % for three, 5.84 % for five and 6.35 % for ten years at LTV up to 80 %; a tight budget favours a longer fixation.
Is a one-year fixation worth it?
In October 2026 it is the cheapest option, at 5.42 % on average (Swiss Life Hypoindex), but the rate resets after a year. It suits borrowers who can absorb a higher payment or plan to repay part of the loan soon, since the end of a fixation is a free window for that.
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