Czech mortgage market in 2021 and the situation at the beginning of 2022


From the point of view of the Czech mortgage market, the year 2021 was a record year, both in the number of provided mortgages and the total volume of provided funds. The main reasons were low interest rates, zero real estate transfer tax, simplified conditions for obtaining a loan and a change in customers' preferences.

However, the increased demand in buying real estate also led to an increase in their price. This concerned not only residential real estate, but also domestic recreational properties such as cottages, which became very popular due to the pandemic. The average amount of the mortgage loan climbed to CZK 3.14 million in the Czech Republic in 2021. On the contrary, in 2019 the average mortgage was only CZK 2.33 million (source:

During the 2021 spring, after a year of constant decline, mortgage rates began to rise gradually and are still rising. Average interest rates have almost doubled compared to the beginning of 2021, while the volume of new loans has fallen. The current average interest rate coincides with the level of interest rates in 2012.

The level of mortgage rates is also significantly affected by the basic interest rates set by the Czech National Bank (CNB). Despite a further increase in key interest rates by the Czech National Bank, interest rates are starting to increase at a slower pace. Further growth of rates is still expected, especially until the CNB's anti-inflationary measures take effect. If the fight against inflation is successful, the growth trend will stop and interest rates may start to fall again.