Variable rate (variabilní sazba)
An interest rate that changes during repayment in line with a reference rate, in Czechia usually 3M PRIBOR, to which the bank adds a fixed margin. The payment is then recalculated, typically every quarter. Under § 117 of Act No. 257/2016 Coll., a variable-rate mortgage can be repaid at any time without a fee. A minority of clients choose it; most prefer a fixed rate.
Example
A CZK 4,000,000 loan over 25 years agreed at 3M PRIBOR plus a 1.2 pp margin has a rate of 5.1 % with PRIBOR around 3.9 % (October 2026), and a payment of CZK 23,617. If PRIBOR rose by 1 pp, the payment would climb to CZK 26,017, an increase of CZK 2,400. A fall of one point would cut it by roughly CZK 2,282 to CZK 21,335.
In practice
A variable rate makes sense if you expect rates to fall or plan to repay or sell soon, because you can do so without a fee. Check the reference rate, the fixed margin and how often the rate resets in the contract. Keep a buffer for at least a 1 pp rise, which on CZK 4,000,000 means roughly CZK 2,400 a month. Comparing PRIBOR directly with a fixed mortgage rate overlooks the margin.
How it differs
Rate fixation holds the rate steady for an agreed period, say 3 or 5 years, while a variable rate moves continuously. A one-year fixation is easily mistaken for a variable rate: it is short, but fixed for the whole year, and early repayment outside the statutory exceptions can incur a fee. PRIBOR is only the base to which the margin is added.
Related terms
In-depth guide
Calculate your own situation
Instead of abstract definitions — enter your own parameters and see the result for yourself. No registration, no form, no salespeople.