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Моrtgage in the Czech Republic

Getting a mortgage from a lending institution is certainly among the most important financial decisions in most people's life.  But you definitely do not take a mortgage for the sake of having one. You need complete and true information so that your effort results in not just in the loan, but a beautiful house or a perfect apartment. And so it is good to have on your side real experts.

Our company VESSAN Reality s.r.o. - is the team of professionals that helps you find the right property. We look for real estate objects to buy according to your requirements and budget.

Finding one's way around mortgage offers may sometimes be complicated. Banks, for example, have a great PR image, you can see their advertisements everywhere, but the actual offer, interest rates and fees may not look so great. Therefore once you have chosen a real estate to buy, we can arrange a meeting with an independent mortgage adviser who will help you find the optimal loan for you. The expert will present you a comparison. You will be able to select the best offer yourself or you can let us help you. In either way you will get the lowest interest rate in the market, according to your case. Now a few words about the mortgages in the Czech Republic in general.

Mortgage loans are available to citizens of the Czech Republic, foreigners with permanent residence in the country, citizens of the EU member states with a residence permit, either temporary or permanent. For married couples, at least one of the spouses should meet the above requirements. Married couples are always co-applicants for the loan. There are two types of loans Czech banks offer. One can select a loan with the purpose restricted to the acquisition of a real estate or a so called American-type mortgage which is not bound to any specific purpose. Typically, conventional European-type mortgages have better rates than those without purpose restrictions.

Mortgage Loan allows you to invest in real estate, solve the problem of housing reconstruction and modernization of real estate, mortgage can also be used for incidental expenses: for example, kitchen, wardrobes, design documentation, geometric measuring buildings, building inspection, real estate commission. The total cost of these expenses may not exceed 50% of the mortgage.
One mortgage can be used for several purposes at once, e.g., purchase can be combined with renovation or with construction of a complementary property. The minimum amount of a loan is 200,000 Czech Krowns, while the maximum amount is limited to 70%, 85% or 100% of the value of the property as estimated by the bank. Mortgages are repaid in monthly annuity payments over the period of 5 to 30 years, until the loan is fully repaid. Typically, the loans are adjustable rate mortgages with the adjustment preiod of 1 to 10 (or rarely, up to 15) years; some banks offer fixed rate mortgages as well. This type of loan should always be secured by an encumbrance of the realty. The real property should also be insured with the insurance policy's vinculation in favor of the bank. The realty should be located in the Czech Republic.

A benefit of a mortgage loan is that you can deduct the mortgage interest from the tax base (up to CZK 300,000 per year).

To apply for the mortgage, the following documents are needed: identification documents (Czech ID card, passport, etc.), evidence of income, loan application, documents to the real property (depending of the type of loan, either purchase contract or a building permit along with construction design documentation, etc.) Typically, processing of the application takes 2 to 3 weeks.

Our mortgage advisers are experts with a long record of experience in solving even the most complicated cases. We will carry out all formalities on your behalf, including appraisal of the property, negotiations with banks and any other administrative tasks associated with your loan application.

We will do our best to meet and exceed your requirements. Partnering with us is a guarantee of your sureness.

 

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