Age limit for a mortgage (věková hranice)
The age by which the borrower must have repaid the mortgage, which in turn caps the longest possible term. No law sets an upper age. It is the bank's internal rule: mBank, for example, wants the mortgage repaid by the time the oldest applicant turns 70, and other banks do not state their limit on their websites. The lower limit is adulthood (18), and applicants under 36 can also reach LTV 90 % instead of 80 %.
Example
An applicant aged 45 wants CZK 4,000,000 over 30 years at 5.00 %, with a payment of CZK 21,473. A bank with an age limit of 70 gives him only 25 years, so the payment rises to CZK 23,384, which is CZK 1,911 more a month. With a younger co-borrower he could keep the 30-year payment, if the bank allows it.
In practice
Besides age, banks look at what you will repay from after retirement, and some ask for an estimate of your old-age pension from ČSSZ (Czech Social Security Administration). An older applicant can lengthen the term by adding a younger co-borrower, such as an adult child. Taking the maximum term when your income after 65 will not cover the payment only postpones the problem to the years when your income drops.
How it differs
The mortgage for young people under 36 is about benefits for younger buyers (LTV 90 %), whereas the age limit restricts when repayment has to end. The age limit also determines the maximum loan term, but the two are not the same: the term is the length of the loan, the age limit is the borrower's age at the end of it.
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