Obtain Mortgage in the Czech Republic

We help our clients to obtain a mortgage in the Czech Republic and we can assist both residents and foreigners. Persons who chose Czech Republic immigration and who want to purchase a property can easily acquire a mortgage, as long as they meet the minimum requirements imposed by the law.

Our immigration lawyers in Czech Republic can present the minimum conditions and can help clients in preparing the file for the request of a mortgage. We also mention that the competent financial institution has eased the access to mortgages in the last years, including for foreigners.

What are the residency requirements for foreigners?

A mortgage for foreigners in Czech Republic can be obtained in the situation in which the foreigners have their residency in this country. One can apply for a mortgage regardless of the type of residence permit in Czech Republic, therefore it can be any of the following:

1. temporary residency;
2. long-term residency;
3. permanent residency.

However, banks can have their own internal policies and can evaluate the risks associated with granting a mortgage to a foreigner (as well as to a Czech citizen) and will often tend to approve the mortgage for permanent residents.

This is given by the fact that the banks are sure that the person lives here and intends to remain in this country and, more importantly, he or she has the necessary financial means to pay the mortgage installments. We also mention that it is possible to obtain a mortgage for foreigners in Czech Republic without having the habitual residency here.

This can be the case of EU nationals, who are treated from a legal point of view similar with the Czech nationals. In this case, it is advisable to have a part of the budget already available, from Czech sources or from sources in the country where the person is a resident.

What are the basic conditions to obtain a Czech mortgage?

Ideally, the foreigner has chosen to immigrate to Czech Republic and he or she lives here at the moment when the application for a mortgage is made, as presented above. Besides these, the following are also of importance:

• the Czech law stipulates that a person can apply for a mortgage if the person is at least 18 years old;
• although the law does not impose a maximum age, banks typically allow clients to make a mortgage when they are in their 60s, and they impose different installments conditions, so that the applicants can repay the mortgage before their 70th birthday;
• the minimum downpayment required by law is 10%;
• however, those who are able to deposit around 20% from the value of the mortgage will obtain lower interest rates;
• according to the latest regulations, that have been eased starting with 2022, banks can offer up to 90% of the value of the property to be bought.

What types of income are accepted for a mortgage?

In order to obtain a mortgage for foreigners in Czech Republic or for permanent residents/citizens, the bank will ask to see evidence on the income of the applicant and any other source of income that can be used for the repayment of the mortgage.

The following can be used for this purpose:

1. employment income (the most important and most common source of funding);
2. alimony and other types of allowance;
3. pension (all types of pensions);
4. income from business activities;
5. rental/lease income, and other constant sources.

These are established in accordance with the rules of the Czech National Bank and applied as such by the commercial banks clients will choose to collaborate with or from which they have obtained an approval.

If you need further information on the mortgage system available in this country, do not hesitate to contact our immigration lawyers in Czech Republic. You are also invited to contact us if you plan to apply for citizenship in Czech Republic.