The natural persons or legal entities interested in purchasing a property in Czech Republic
have better conditions when applying for a loan
issued by a local bank. The mortgage market in Czech Republic
reached a new record at the level of November 2016, when the interest rate
applicable to mortgages was established at 1.77%
. An important aspect related to this market is that the foreigners can get a mortgage
in a faster manner, as they are no longer required to first set up a company
here, prior to purchasing a property
. Our team of Czech lawyers
can offer legal assistance to foreigners who are interested in the lending conditions
applicable in this country.
Mortgage market in Czech Republic
The overall number of the mortgages registered in Czech Republic at the level of November 2016 increased to 14,386, marking the highest value set up in 2016. The second highest number was registered in June 2016, when the total number of mortgages was situated at 12,324.
The value of the contracts established in November amounted for CZK 29.683 billion.
Another important aspect is that, starting with December 2016, those signing mortgages contracts
will benefit from the stipulations of the Consumer Credit Act
, which will provide better conditions for early repayments
. However, it is important to know that the local analysts said that the mortgages rates
will not go lower than this value. Our team of lawyers in Czech Republic
can assist with more details related to the lending conditions
applicable to this field.
Obtain a mortgage in Czech Republic
At the moment, Czech citizens can obtain a mortgage rather easy, as the conditions established in this sense are simple. The regulations were modified to better accommodate the needs of the foreign citizens, as well. The main criterion in obtaining a mortgage is to offer a proof of having a stable income.
This is applicable to local citizens, as well as to citizens of the European Union (EU). Self-employed persons
are also allowed to obtain a mortgage
, but the regulations available for them are different than in the case of those who are employed in a Czech company