The Czech National Bank has decided to reduce banks´ fees on mortgages


Czech National Bank has decided to ban some of the fees on early repayment of the mortgages. This regulation should help arrange better conditions for applicants for a mortgage.

Currently the banks can only charge:

  • Fees associated with the early repayment of a mortgage and these need to be reasonable and related to the costs of the repayment directly.
  • These fees include administration, postage, copying documentation, the fees for providing a mortgage or the fees for evaluation.
The banks cannot charge for example any resulting decrease in the interest income of the financial instituton on their interest costs from the loans.

Generally the early repayment fees will be significantly lower than were before which is positive for all clients.