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Residential mortgage

 

Why pay rent instead of owning your own home?

  • We can lend to you up to 95 % of the estimated value of the property

  • Your instalments can be scheduled over a period of up to 30 years

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Residential mortgage

Why pay rent instead of owning your own home? Invest in a home of your own and we will help you set up a repayment schedule to avoid placing excessive burden on yourself.

U hypotéka účelová - Finanční produkt roku 2019

Our Special-Purpose Mortgage Loan ranked first in the Mortgage Loans category.

 

Why get a Mortgage Loan?

  • We can lend you up to 95 % of the estimated value of the property (or up to 80% for clients over 36 years of age)
  • You can spread the instalments over a period of up to 30 years
  • Interest rates on residential mortgage loans may be as low as 4,69 % p.a. 
  • We cooperate with a number of development companies

 

Mortgage Guide (PDF 507 kB)

Important documents for download

  • No upper limit has been defined; we can lend you up to 95 % of the estimated value of the property (or up to 80% for clients over 36 years of age)
 

How to secure a mortgage loan?

  • Your mortgage loan can be secured by the purchased property or by another residential property located in the territory of the Czech Republic.
  • If you are buying a co-operative apartment, the mortgage loan must be secured by a privately owned property.

Which type of interest rate should you choose?

  • Fixed interest rate – You can choose the length of the fixation period from between 1 to 10 years. During the fixation period, the interest rate and instalment amount will remain unchanged irrespective of existing economic circumstances.

How will your mortgage loan be drawn?

  • According to your needs within 24 months of signing the loan agreement, up to 36 months in case of purchase of a property from a development project

How will the mortgage loan be repaid?

  • The mortgage loan can be repaid over a period of up to 30 years.
  • During the drawdown period, you only pay interest on the drawdown amount, and after the mortgage is used up, regular annuity installments begin to be paid

What else can you choose?

  • Besides money for payment of the purchase price, you can obtain additional money for an unspecified purpose.

A foreign-currency mortgage loan means a loan where at least one of the applicants either receives an income in a foreign currency or resides outside the Czech Republic. The foreign-currency mortgage loan is offered in CZK. If CZK strengthens so that the Bank’s FCY middle exchange rate of CZK to the currency of your income or the currency of your place of residence changes by at least 20 % compared to the Bank’s FCY middle exchange rate as of the loan contract signing date, you will be entitled to early repayment of the loan without any request to compensate the Bank for reasonable costs incurred in consequence of the early repayment.  

When can you repay the loan?

You can repay the loan at any time during the term of the contract, in whole or in part. However, the request must be made at least 10 working days before the requested early repayment date, either in writing or in person at a bank branch. Please contact your banker for more details about the exact amount you have left to pay.

 

What are the costs that you should know about?

A) In the event of early repayment of loans taken out or refixed after 1 December 2016, we are entitled under the Consumer Credit Act to reimbursement of reasonable costs incurred in connection with early repayment.

We have to prepare and process the early repayment of the loan, which is not part of the day-to-day loan administration. As a result, we incur administrative costs, which currently amount to CZK 1,500, and therefore we require payment of this amount upon early repayment of the loan.

Reimbursement of early repayment costs is not required if early repayment is made:

  • as part of payment under the insurance policy intended to secure the repayment of the loan
  • in a period for which there is no fixed interest rate (i.e., when the rate is not fixed but, for example, variable)
  • within 3 months after the bank announces the new interest rate (i.e., in the event of refixing and within 3 months before the refixing date)
  • as a result of the death, long-term illness or disability of the client, the client’s spouse or registered partner, if this leads to a significant deterioration of the ability to repay the mortgage loan
  • within 1 month prior to the mortgage loan agreement anniversary date and up to a maximum of 25% of the loan principal drawn down


If the mortgage loan agreement lasts longer than 24 months at the date of early repayment and the loan is thus repaid early in connection with the sale of the property that is the subject of the security or the object of the loan; the reimbursement of the costs for early repayment cannot exceed 1% of the amount of the loan repaid early, but to a maximum of CZK 50,000.

B) In the event of early repayment of loans taken out before 1 December 2016 and not refixed after that date, we are entitled to a compensation fee according to the price list or to reimbursement of the costs specified in the loan agreement.       

The compensation fee for early repayment is not required if early repayment is made:

  • in a period for which there is no fixed interest rate (i.e., when the rate is not fixed)
  • within 1 month before the end of the current fixed-rate term


How can the compensation fee be reduced?

The amount of the compensation fee is affected by:

  • the amount of the requested early repayment
  • the remaining time until the end of your fixed-rate term

If you want to eliminate the compensation fee altogether, it is best to stick to your original fixed-rate term. If you repay your loan early at the end of the current fixed-rate term, the early repayment will be at absolutely no cost.

If you fail to pay any contractually agreed debt by the due date, then, besides the interest agreed in the contract, you will also be liable to pay to the Bank default interest on the overdue amount, over the entire period of default, in accordance with Czech Government Regulation No. 351/2013 Coll. as amended, in an amount currently set at 12.75 % p.a. (per annum).

This default interest rate is regarded as the maximum allowed. You are hereby notified that failure to pay the debt due under the existing contract is a serious infringement of the contract and that in such case, the Bank is authorized to either withdraw from the contract (with effects of exercising the right of withdrawal for the future), and to require immediate repayment of the loan in full, or, without withdrawing from the loan contract, declare all or certain owed amounts as immediately due and payable.

Before declaring the loan immediately due and payable, the Bank shall address the client with a request to pay the overdue amount within a 30-day period.

For charges related to collections of owed amounts, see the Price List.

Property insurance
We will protect your house or apartment from a number of risks, such as fire, flood, explosion, theft, vandalism, etc.

Home insurance
We will protect your household from a number of risks, such as fire, flood, explosion, theft, vandalism, etc.

Liability insurance
Did you flood out the neighbours? Did your child break a window with a football? Did you knock over a vase in a shop? No need to worry, we will compensate the loss for you.

Ability to Pay Insurance
Upon unexpected loss of income, you will remain able to pay your monthly instalments.

Important documents are available for downloading here.

 

Illustrative example with Account Activity:

The total loan amount is CZK 2,000,000. The duration of the loan is 300 months. The interest rate of 4.89 % p.a. is fixed for 3 years. The monthly instalment amount is CZK 11,564. The Annual Percentage Rate of Charge (APRC) is 5.04 %. The RPSN includes one-off credit costs (CZK 2,900), withdrawal on the basis of a proposal to deposit a lien into the real estate register of CZK 1,900, registration and erasure of the lien with the Land Registry (CZK 4,000) and signature authentication (CZK 50). The total amount due is then CZK  3,478,311.15

Information on interest rate:

The interest rate of 4.89% is valid for a 3-year fixation and for a loan amount of maximum 80% of the value of the collateral provided and fulfilling the condition of activity on the account from which the loan is repaid (activity on the account means the monthly sending of an amount in the amount of at least 1.5 times the annuity payment in favor of this account and the monthly execution of at least 3 payments with the card issued for this account).
 

This example is provided for informational purposes only and shall not be understood as a proposal for signing a loan contract.

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