Mortgage in the Czech Republic
A mortgage in the Czech Republic is available not only to citizens of the country, but also to foreigners with a residence permit and even to Ukrainians with temporary protection. The issue is not the possibility itself, but the terms: the size of the down payment, the interest rate, and the list of documents that a particular bank will require.
International Law Firm "Zahist" has its own representative office in the Czech Republic, as well as in Poland, Finland, the Netherlands, France, and Germany. The daily practice of supporting Ukrainian families on matters of legalization, financing, and real estate purchase enables our lawyers to know precisely which banks actually work with holders of temporary protection.
The average rate on new mortgage loans in the Czech Republic in 2026 remains in the range of 4.4–4.5% per annum for local borrowers; however, for foreigners without permanent or long-term residence, banks often apply a surcharge of 0.5–1 percentage point.
Who can obtain a mortgage in the Czech Republic
Czech citizenship provides the simplest access to a mortgage: the bank only needs proof of income, absence of debts, and a down payment of 10–20% of the property value.
Foreigners with a residence permit or permanent residence obtain almost the same terms as citizens, but the down payment usually starts from 20%, and the employment contract must have been in force for at least 12 months.
Holders of temporary protection (dočasná ochrana) fall into the most difficult category: far from all banks consider such applications, and among those that work with this status are Česká spořitelna, ČSOB, and Raiffeisenbank.
Our experience shows that a bank’s decision in this category almost always depends on the stability of income and the length of residence in the country, and not only on the applicant’s formal status.
Terms and rates for 2026
The Czech National Bank limits the LTV ratio (loan amount to property value): for borrowers under 36 the upper limit is 90%, for others — 80%.
Banks offer a fixed rate for 3, 5, 7, or 10 years, or a floating rate linked to the ČNB base rate and reviewed every 3–6 months.
- A fixed rate for 5 years is the most popular option among families with a stable income
- A floating rate suits those who plan early repayment without penalty fees
- For holders of temporary protection, the down payment usually starts from 30%
- For this category of borrowers, banks sometimes limit the loan term to 15–20 years instead of the standard 30
Property prices vary significantly by region, which directly affects the size of the loan required.
| City | Average price per m² | Trend |
| Prague | €5,500–6,500 | Moderate growth |
| Brno | €4,200–5,000 | Steady growth |
| Plzeň | €3,000–3,500 | Stabilization |
| Ostrava | €2,200–2,800 | Low growth |
Fixed or floating rate: what to choose
The choice between the two types of rate depends on the family’s planning horizon and willingness to monitor changes in the ČNB base rate.
| Parameter | Fixed rate | Floating rate |
| Payment amount | Does not change during the fixation period | Reviewed every 3–6 months |
| Early repayment fee | Usually applies, up to 1% of the outstanding balance | As a rule, none |
| Budget predictability | High | Low |
| Suitable for | Long-term planning | Rapid loan repayment |
Mortgage for Ukrainians with temporary protection: what you need to know
The key condition for this category is official employment in the Czech Republic for at least 12 months and confirmed stable income for the last 3–6 months via a bank statement.
The minimum period of actual residence in the country that banks typically require is from 6 months, and credit history is checked only within the Czech registers SOLUS and CBCB.
Our experience shows that applications submitted through a mortgage broker or a lawyer familiar with the current practice of a particular bank are approved significantly more often than independent applications without prior preparation.
From our practice: a family with temporary protection that had lived in the Czech Republic for a year and a half and had official employment for both spouses received approval for 80% of the apartment value with a fixed rate for 5 years. The entire process, including bank selection, took about two months.
Which documents need to be prepared
The standard document package is divided into three blocks: proof of identity and status, proof of income, and documents relating to the property itself.
- International passport and a document confirming a residence permit or temporary protection
- Income certificate from the employer for the last 3–6 months and the employment contract
- Bank account statements for the same period
- Preliminary real estate purchase agreement (rezervační smlouva)
- Consent of the spouse if the applicant is married
For sole traders (OSVČ) the list differs slightly: instead of an employer’s certificate, the bank will request confirmation of business registration and the tax return for the last year.
How the mortgage process works: main stages
From the first consultation at the bank to registration of ownership in the real estate cadastre, the process on average takes from 4 to 8 weeks with a fully prepared document package.
- Determine the budget and calculate the size of the down payment
- Compare the terms of several banks or contact a mortgage broker
- Submit a preliminary application and undergo a creditworthiness check
- Find the property and sign a preliminary purchase agreement
- Submit the full document package and wait for the bank’s property valuation
- Sign the mortgage agreement and arrange mandatory property insurance
- Register ownership in the Katastr nemovitostí
Comparison of banks for foreign borrowers
Terms differ noticeably across banks, especially regarding work with holders of temporary protection, so comparison should be carried out before submitting an application, not after the first refusal.
| Bank | Min. down payment | Features for foreigners |
| Česká spořitelna | 10–20% | Residence permit/permanent residence, individual review |
| ČSOB | 20% | Considers applications with temporary protection |
| Raiffeisenbank | 15–20% | Works with holders of temporary protection |
| UniCredit Bank | 20% | Residence permit, permanent residence, or long-term status required |
Additional costs when arranging a mortgage
In addition to the down payment and monthly installments, you should budget in advance for insurance costs, notary fees and, if needed, a mortgage broker.
| Expense item | Approximate amount | Mandatory nature |
| Property insurance | CZK 1,000–4,000 per year | Required by almost all banks |
| Borrower’s life insurance | CZK 300–1,000 per month | Often required by the bank |
| Notary services | CZK 10,000–15,000 | Mandatory |
| Escrow account administration | CZK 5,000–10,000 | Mandatory for the transaction |
| Mortgage broker | CZK 0–20,000 | At the borrower’s discretion |
Typical mistakes when arranging a mortgage
The first mistake is submitting applications to several banks at once in parallel, which negatively affects the applicant’s credit rating.
The second is underestimating additional costs for insurance and the notary, which results in a shortfall of funds at the final stage of the transaction.
The third is submitting documents without a prior consultation with a bank that actually works with holders of temporary protection, and receiving a refusal that could have been anticipated in advance.
The fourth is declining life insurance where the bank treats it as a condition for a more favourable rate, and ultimately overpaying on the loan by more than the insurance policy would have cost.
Mortgage refinancing: when it makes sense
After the rate fixation period ends, many borrowers consider refinancing—switching to another bank on more favourable terms if market rates have fallen in the meantime.
Refinancing is usually possible without penalty charges precisely at the end of the fixation period, so the end date should be monitored in advance rather than left until the final month.
Our experience shows that timely refinancing can reduce the monthly payment by 5–10%, especially if the original rate was obtained during a period of a high ČNB key interest rate.
How we help arrange a mortgage in the Czech Republic
Our lawyers support clients at every stage—from selecting a bank that genuinely works with their status through to preparing the full set of documents and registering title to the property.
Our experience shows that comprehensive transaction support—with document review even before the application is filed—significantly increases the chances that a mortgage in the Czech Republic will be approved even for borrowers with temporary protection status.
We also help clients compare the terms of several banks and choose the option with the most favourable combination of rate, term and down payment.
