Can Foreigners Get a 90% Mortgage in the Czech Republic?
Buying a property in the Czech Republic with just a 10% down payment is possible, even for foreign nationals. However, eligibility depends on more than just your age and income. Your nationality, residence status and the mortgage lender you choose can make a significant difference.
The 90% Mortgage Rule in the Czech Republic
Under the current regulations of the Czech National Bank (CNB), the standard maximum Loan-to-Value (LTV) ratio for residential mortgages is 80%. However, applicants under the age of 36 purchasing a property for their own residential use may qualify for financing of up to 90% of the property's value.
Importantly, the CNB does not restrict this 90% LTV allowance to Czech citizens. Foreign nationals may also qualify, provided they meet the relevant conditions.
For example, if you are purchasing an apartment in Prague valued at CZK 8 million, a 90% mortgage could allow you to borrow CZK 7.2 million, leaving you to contribute just CZK 800,000 from your own funds.
This is particularly relevant for younger expatriates who have stable employment and sufficient income but prefer not to commit a substantial portion of their savings to a property purchase.
Does Nationality Matter?
Although the regulatory framework does not distinguish between Czech and foreign applicants, individual banks have their own lending policies.
In practice, lenders generally assess foreign mortgage applicants based on several factors:
EU or non-EU citizenship: EU citizens often have access to a broader range of mortgage products, while non-EU nationals may face additional requirements.
Residence status: Permanent residence in the Czech Republic can significantly improve access to mortgage financing, particularly for non-EU citizens.
Employment and income: Stable, verifiable income is essential. Banks may apply different criteria depending on whether the income is earned in the Czech Republic or abroad.
Credit history: Existing financial commitments and repayment history are important elements of the mortgage assessment.
Some banks may offer 90% LTV financing to eligible foreign nationals, while others may limit financing to 80% or less, even when the applicant meets the CNB's general requirements.
Consequently, choosing the appropriate mortgage lender is particularly important when seeking higher-LTV financing.
What If You Are Married and Only One Applicant Is Under 36?
For married couples or joint mortgage applicants, the age requirement deserves particular attention.
A couple may qualify for the higher LTV allowance where at least one of the applicants is under 36, provided the applicable conditions are met and the property is intended for their own residential use.
For example, a 38-year-old husband and his 33-year-old wife purchasing their family home will qualify for 90% financing.
However, meeting the regulatory age requirement does not automatically guarantee that a particular bank will approve the mortgage.
How to Improve Your Chances of Getting a 90% Mortgage
If you are a foreign national considering a property purchase in the Czech Republic, the most effective approach is to assess your financing options before committing to a particular property.
A mortgage pre-assessment can help establish whether you qualify for 90% financing, which lenders are suitable for your nationality and residence status, and how much you can realistically borrow.
It is equally important to ensure that your available funds are sufficient to complete the purchase while maintaining appropriate financial reserves.
A 90% mortgage can be an attractive financing solution for younger foreign buyers, but the availability of such financing varies considerably between Czech banks.
Looking for a 90% Mortgage in the Czech Republic?
At Mortgage Specialist, we have been helping expatriates and international clients arrange property financing in the Czech Republic for more than 11 years.
We work with multiple Czech mortgage lenders and understand the differences in their lending policies towards foreign nationals.
If you are under 36 and planning to purchase your own home in Prague or elsewhere in the Czech Republic, we can help you assess your eligibility and identify suitable mortgage financing options.
Contact Mortgage Specialist to discuss your mortgage options before starting your property search.
P.S. Are you over 36? A 90% mortgage may still be possible in certain circumstances for you. Contact us to explore your options.