Early repayment fee (sankce za předčasné splacení)
A fee the bank may charge when the client repays all or part of the mortgage outside the free-of-charge situations. Under § 117 of Act No. 257/2016 Coll., on consumer credit (as amended from 1 September 2024), it is at most 0.25 % of the amount repaid for each started year left until the end of the fixed period, 1 % at most in total, and never more than the interest the bank actually loses.
Example
A client wants to send CZK 1,000,000 outside the contract anniversary, with 2 years and 4 months left until the fixed period ends. That counts as three started years, so the cap is 3 × 0.25 % = 0.75 %, i.e. at most CZK 7,500. With more than three years remaining, i.e. four or more started years, the overall cap of 1 % would apply: CZK 10,000.
In practice
Before paying anything, check whether one of the free exceptions applies: the end of the fixed period; up to 25 % of the loan amount within the month before the contract anniversary; the three months after notice of the new rate; settlement of community property (SJM) after divorce; sale of the property at least 24 months after the loan was signed; or death or long illness. People most often pay the fee simply because their payment landed after the anniversary date, outside the statutory one-month window. Always ask the bank for a written calculation. All the free situations are covered in repaying a mortgage early.
How it differs
People often mix the fee up with default interest, which is charged to a borrower who pays late rather than early. An extra payment on the anniversary is a different matter again: within the statutory window the law allows no fee at all, and the early repayment fee applies only to payments outside the exceptions.
Frequently asked questions
How much is the early repayment fee on a Czech mortgage?
At most 0.25 % of the amount repaid for each started year left until the fixation ends, and never more than 1 % in total. On CZK 1,000,000 with 2 years and 4 months left, that is at most CZK 7,500.
When can you repay a mortgage without a fee?
At the end of the fixation and within 3 months of the new-rate notice; up to 25 % of the original loan amount each year in the month before the contract anniversary; and on a sale or a divorce settlement once 24 months have passed since signing. Death, long illness or disability that seriously cuts your ability to repay also qualifies.
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