FAQ Mortgage and Financing in Prague

13. 9. 2017

1. Can I obtain a mortgage in Prague if I am a citizen?
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Yes, however the requirements for foreigners are very specific. Foreigners are distinguished into two different categories: EU residents and Non-EU residents. Requirements for these two categories differ immensely. In addition, most banks demand an income from the Czech Republic and a permanent residency. For more information about mortgages visit our article about "Mortgages and Financing in Prague":http://www.philip-frank.com/en/prague-guide/8654992-mortgage-and-financing-in-prague.

2. What documents are needed to get a mortgage?
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It is very important to listen carefully at your first bank meeting to know whether the bank wants an original, certified copy or just a regular copy of the needed documents. Below is a list of documents, that your bank will most likely ask for:

- ID documents (In the case of foreigners, the document is a passport.)
- Income declaration
- Proof of expenditure\t
- Documents when purchasing the property

For a more detailed overview of needed documents you can visit our article "Mortgages and Financing in Prague":http://www.philip-frank.com/en/prague-guide/8654992-mortgage-and-financing-in-prague. The process of obtaining a mortgage can be very difficult especially when applying for one in a foreign country which is why we advise to use the services of a financial advisor who will emphasize the client’s needs, represent their client in all important decisions and help them get the best mortgage value possible. Please "contact us":#contact if you have any further questions regarding mortgages.

- Mobile: +420 602 544 858.
- Email: info@philip-frank.com

3. What are the best mortgages available on the Czech market?
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There are several factors, which affect the final interest rate such as: loan maturity date, loan amount, deposit amount, level of income, etc. In the case of a FRM (fixed rate mortgage) which can be for 1, 3, 5, 7, 8, 10 years and more, the lowest interest rate is usually for a 3-year or 5-year fixation period. Both short and long fixation periods have their advantages and disadvantages and it depends on the client, what they prefer.

4. Is it possible to get a mortgage without any deposit?
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Unfortunately for foreigners, obtaining a mortgage without any down payment is not possible. In general, banks in the Czech Republic lend up to a maximum of 85% LTV. However, the bank can value a property at a lower price than it is, which results in more funding from your own pocket. Therefore, it is advised to have at least 20–30% of the real estate price of the property prepared.

5. What is the average interest rate of mortgages in Prague?
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At the moment, Czech Republic has an average interest rate of roughly 2,02%. Although neighbouring countries have interest rates such as 1,07%, 1,19% and 1,5%, Czech Republic still has one of the lowest interest rates on the market.