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Mortgages in the Czech Republic for foreigners

Mortgages in the Czech Republic for foreigners

Prague’s charming streets and vibrant culture might have you dreaming of owning a piece of the Czech Republic. But navigating the mortgage process, especially for foreigners, can seem daunting. Fear not! This guide ‘Mortgages in the Czech Republic for foreigners’ will equip you with the knowledge to secure your Czech dream home.

Qualifying for a Czech Mortgage:

  • Residency:

    Permanent residents, foreigners with long-term visas, and even some non-residents can qualify for mortgages in the Czech Republic. However, conditions may vary depending on your situation.

  • Income:

    Lenders assess your debt-to-income ratio (DTI) and debt service-to-income ratio (DSTI) to ensure affordability. Generally, DTI shouldn’t exceed 8.5 times your net income (9.5 for applicants under 36) and DSTI shouldn’t exceed 45% of your net income.

  • Employment:

    Stable employment with a proven track record strengthens your application.

  • Credit History:

    A good credit history, ideally without defaults or delinquencies, increases your chances of approval and secures better interest rates.

Documents Needed:

  • Passport and proof of residency permit (if applicable)
  • Employment contract and income statements
  • Bank statements for the past 3-6 months
  • Proof of down payment (usually 10-20% of the property value)
  • Property valuation report

Top 5 Banks for Mortgages in the Czech Republic (as of May 2024):

  1. Česká spořitelna (Czech Savings Bank):

    Renowned for their customer service and transparent communication. Current mortgage rates start at 4.49% (fixed rate).

  2. Komerční banka (Commercial Bank):

    Offers a wide range of mortgage products and online tools for managing your loan. Current mortgage rates start at 4.79% (fixed rate).

  3. Hypoteční banka CSOB (Mortgage Bank):

    Specializes solely in mortgages, offering expertise and competitive rates. Current mortgage rates start at 4.89% (fixed rate).

  4. Moneta Money Bank:

    A modern bank with a focus on user-friendly technology for managing your finances. Current mortgage rates start at 4.95% (fixed rate).

  5. Raiffeisenbank:

    Offers a variety of mortgage products with a focus on flexibility and personalised solutions. It’s worth checking their current rates depending on your specific needs.

Mortgage Length and Interest Rates:

  • Maximum Mortgage Length:

    The maximum loan term is typically 30 years,  with some banks offering up to 40 years for exceptional cases. However the maximum age is 70 for the loan’s maturity. So if you are 50 years old, your mortgage can be only 20 years long.

  • Current Interest Rates:

    Interest rates are currently fluctuating but generally range between 4.49% – 5.9% (as of May 2024). Fixed-rate or variable-rate mortgages are available.

Loan-to-Value Ratio (LTV) and Limitations:

  • LTV Ratio:

    The maximum LTV (loan-to-value) ratio in the Czech Republic is typically 80%, meaning you’ll need a down payment of at least 20% of the property value.

  • Other Limitations:

    Some banks may have limitations on property types, applicant age, or minimum loan amounts. Be sure to check with your chosen bank for their specific requirements.


Let’s say you want to buy a property in Prague for 10 million CZK. With a 20% down payment (2 million CZK), your loan amount would be 8 million CZK. If you secure a mortgage with a 5% interest rate and a 30-year term, your monthly payments would be approximately 42,000 CZK (this is an estimate and can vary depending on the specific loan offer).


  • Shopping around and comparing offers from different banks is crucial to find the best mortgage deal for your situation.
  • Consider seeking professional advice from a mortgage broker who can guide you through the process and negotiate on your behalf.

Urban Address Prague: Your Partner in Securing Your Czech Dream Home

Navigating the complexities of the Czech mortgage market, especially with language barriers, can be a hurdle. Urban Address Prague is here to help! Our team of multilingual experts can streamline the process for you. We can:

  • Assist you in understanding mortgage eligibility requirements and documentation.
  • Connect you with reputable mortgage brokers and banks that cater to your specific needs.
  • Help you navigate the loan application process and overcome any language barriers.
  • Provide guidance on different mortgage options and help you negotiate the best possible interest rate and terms for your situation.

Owning a piece of the Czech Republic can be a dream come true. With careful planning, the right mortgage, and the support of Urban Address Prague, you can turn that dream into reality!

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