Where to get a mortgage?
In the past it was very hard due to the high level of bureaucracy involved and to the fact that Czechs generally disliked being in debt. Now mortgages are widely available and they are offered not only by Czech banks but also by international institutions operating in the Czech Republic.
EU nationals as well as non-EU nationals with Czech residency can apply for a mortgage in the Czech Republic directly. Otherwise you need to apply for a mortgage loan through the S.R.O., a Czech limited liability company.
The amount of a mortgage you can get
Most banks will only finance between 75-85% of the total real estate price and the rest has to be paid in deposit by you. The duration of mortgages varies from 5 to 25 years, usually with fixed interest rates for the first five years.
In many cases it is better to apply for a mortgage as an individual since you will receive better interest rates than through a newly established S.R.O. However if you have already had it with a good investment history in the Czech Republic for some years, you might get better mortgage offers via the S.R.O.
If you want to apply for a mortgage loan you need to provide different documents. They include a copy of the purchase contract or of the preliminary contract and a proof of income. The proof of income should also include the incomes of any co-applicants or guarantors. If you are an employee you’ll need to prove your average income over the last three months and provide an employment contract. Self-employed people will have to use their tax return documentation from the last two years as proof of income. Additionally, a real estate appraisal is needed. The application will usually take two weeks to process.