Mortgage Questions You Should Know the Answer To


Property purchase and mortgage loan can evoke lots of questions for many of us. Having the right answers could mean reducing both the stress and the cost.

1. How much can I borrow?

This might be a burning question, because this affects the type of property that you can afford. This generally depends on your income, type of income; other loans you have and on the amount of money that you have saved. Remember that the purchase price is not the final price, but it is close to that. Other charges can grow just up to CZK 20,000 in general.

2. What documentation should I gather?

To apply for the mortgage prepare the following document. Sometimes you might be asked to submit additional documents.

  • ID (in Czech: Občanský průkaz) and passport or driving license

  • Proof of your citizenship or permanent residence permit

  • Proof of your income or tax reclamation (your income has to originate in Czech Republic)

  • Personal details

  • Property details

3. How long does it take to close a mortgage?

Even though there is no definitive answer to this question, the average time to close a mortgage for an apartment purchase is around 15 - 40 days. Many factors and your individual circumstances frame the total time needed. You can shorten this time by preparing all required documents.

4. What is LTV?

The loan to value or LTV is the amount of money you borrow from the bank compared to the purchase price of the property. Maximum LTV allowed in the Czech Republic is 90% LTV. However, the most common are 80% mortgages in the Czech Republic.

5. How much should you save for a down payment?

It is required to have at least 10% of the purchase price, but in most cases applicants have 20% (or even more).

If you have any other questions, don't hesitate to contact us.