Mortgage loan (hypoteční úvěr)
A loan secured by a lien on a property, provided by a bank or another lender licensed under Act No. 257/2016 Coll., on consumer credit. The Act classes it as consumer credit for housing. It is mostly purpose-bound, used to buy, build or renovate a home; the non-purpose version is called an American mortgage. Thanks to the collateral, its rate is lower than on unsecured loans.
Example
In August 2026 the average new mortgage was CZK 4.59 m, and banks granted 5,825 new mortgages that month. At the average rate of 5.00 % and a 25-year term, a CZK 4,000,000 loan costs CZK 23,384 a month and roughly CZK 3,015,000 in interest over its life.
In practice
Before signing you have 14 days to consider the offer, during which the bank may not change or withdraw it. Once you have signed, the cooling-off period you may know from consumer loans does not apply. The bank must hand you a pre-contractual information form beforehand and assess your creditworthiness. Compare offers by APRC (RPSN) and the total amount payable, not by the rate alone.
How it differs
An American mortgage is non-purpose and therefore dearer. Unsecured consumer loans are arranged faster, but for smaller sums, over shorter terms and at higher rates. A building savings loan is also meant for housing, yet up to a certain amount the building savings bank will lend without a pledge on property.
Frequently asked questions
What is a mortgage loan (hypoteční úvěr)?
A loan secured by a lien on property, regulated in Czechia as consumer credit for housing. It usually finances buying, building or renovating a home, and the collateral makes it cheaper than unsecured credit.
What are the conditions for a Czech mortgage loan?
The binding ČNB limit is LTV 80 % of the property's value, or 90 % if one applicant is under 36. Banks add their own income rules, usually debt payments of up to 45 % of net income (50 % under 36), and must assess your creditworthiness.
When can you repay a mortgage loan without a fee?
At the end of each fixation and within 3 months of the new-rate notice, up to 25 % of the original loan each year in the month before the contract anniversary, and on a sale or divorce settlement after 24 months from signing. Otherwise the fee is at most 0.25 % per started year left in the fixation, 1 % in total.
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