Parental allowance (rodičovský příspěvek) as income

A married couple applies for a mortgage; the husband has a net income of CZK 60,000, the wife receives parental allowance of CZK 10,000 a month. A bank that counts the allowance works with CZK 70,000 and, with an internal threshold of 45 %, allows a payment of CZK 31,500. A bank that does not recognise it starts from CZK 60,000 and allows only CZK 27,000, i.e. a loan of roughly CZK 5,000,000 over 30 years at 5.00 %.

Banks usually want the labour office's decision granting the allowance and statements showing where it is paid. They also want to know whether the parent will return to work after parental leave, and an employer's confirmation helps here. Each child also raises the bank's estimate of household living costs. Spreading the allowance into the lowest possible monthly amount just before applying reduces the income the bank can count.

Maternity benefit (mateřská, peněžitá pomoc v mateřství) is a sickness insurance benefit under Act No. 187/2006 Coll., derived from previous earnings, and banks accept it more readily. Parental allowance is a state social support benefit with a fixed total, and the parent chooses how much to draw each month.