Many people buy property in Europe, and the Czech Republic is no exception. What are the possibilities for Russians to get mortgage loans in the Czech Republic? Is there any chance of getting a mortgage? If so, how to do it and how does it depend on your income?
Citizens of Russia, when applying for a mortgage in the Czech Republic, have much more difficult conditions than citizens of member states European Union. Any bank can provide them with a mortgage loan, although on different terms.
For most banks to provide a mortgage loan to a Russian citizen legally working in the Czech Republic, proof of income will be enough. But there are banks with more stringent requirements.
Conditions for obtaining a mortgage loan for Russian citizens from individual banks?
| Bank | Terms |
| Erste Group | |
| mortgage bank | Residence permit and sufficient legal income |
| Commercial Bank | Residence permit and sufficient legal income |
| LBBW bank | Residence permit and sufficient legal income |
| mBank | Residence permit and sufficient legal income |
| Raiffeisen | Residence permit and sufficient legal income, residence in the Czech Republic for at least 2 years |
| Unicredit | Residence permit and sufficient legal income, identification code |
| Volksbank | Residence permit and sufficient legal income |
| Wustenrot | Residence permit and sufficient legal income |
A prerequisite for obtaining a mortgage loan, regardless of nationality, is the ability to repay the mortgage loan, based on the income presented. Here, however, the banks different conditions. Some banks can provide you with a mortgage loan only if you received this income in the Czech Republic. Other banks may also take into account the income received by you in another state.
If you are not a citizen of any EU state, but your income is received in the Czech Republic, then you should not experience any difficulties in applying for a mortgage loan, at least with most Czech mortgage banks. The table contains the main conditions for granting loans.
| Bank | Terms |
| Erste Group | |
| mortgage bank | The same mortgage conditions as for Czech citizens |
| Commercial Bank | Maximum loan amount 85% of the mortgage value |
| LBBW bank | The same mortgage conditions as for Czech citizens |
| mBank | The same mortgage conditions as for Czech citizens |
| Raiffeisen | The same mortgage conditions as for Czech citizens |
| Unicredit | Entrepreneur must submit 2 annual tax returns |
| Volksbank | The same mortgage conditions as for Czech citizens |
| Wustenrot | The same mortgage conditions as for Czech citizens |
If, however, you are not a citizen of any EU state and your income is received outside the Czech Republic, you must reckon with certain restrictions. Especially if you are doing business in Russia, and it is the only alternative for you to get a mortgage in the Czech Republic, you should only contact the Mortgage Bank, which also takes into account this type of income.
| Bank | Terms |
| Erste Group | |
| mortgage bank | Entrepreneurial and employment income accepted |
| Commercial Bank | |
| LBBW Bank | Income from employment only is accepted |
| mBank | Only income from entrepreneurial activity, the maximum loan amount is 70% of the value of the securities |
| Raiffeisen | Accepted only if the proceeds are sent to Czech banks |
| Unicredit | Only income from hired work in the Czech Republic is accepted |
| Volksbank | Only income from hired work is accepted |
| Wustenrot | Only income from hired work is accepted |
The acquisition of real estate is real, even under standard conditions
Russians who have been working and living in the Czech Republic for a long time have a pretty good chance of getting a mortgage loan to buy real estate here. More limited opportunities, however, when you work and live outside the Czech Republic and want to get a mortgage loan here. For you, the only alternative to buying your own home is a mortgage loan from the Mortgage Bank. The bank has been providing mortgage loans for a long time, and, thanks to its specialization, finances housing construction.
Another option is to purchase housing in a mortgage from the Czech division of Sberbank.
The Czech Sberbank provides loans for up to 30 years, the ability to suspend payments due to illness or job loss. Enough low interest, that is, so low that Sberbank offers the transfer of a mortgage already issued in another bank on the best terms for the client. But, probably, financing cannot exceed 70% of market value real estate.
The program is designed for in Prague on individual with a visa - a residence permit or permanent residence in the Czech Republic.
Under this program, a loan is provided for a maximum of 80% of appraised value real estate with or 90% with permanent residence. Estimated - this is the cost at which it will be assessed by an independent expert. With a market value of the property of 100.000€, the appraiser can value it at 95.000€.
Mortgage term up to 30 years (age of the borrower up to 65 years). If the physical a person is 50 years old, then the maximum mortgage can be obtained for 15 years.
The interest rate with permanent residence is 3.7% per annum, you need to show income (fixed when signing a loan agreement).
The interest rate with a residence permit is 5.7% per annum (fixed upon signing the loan agreement). You don't need to show income.
real estate from natural and other disasters in the amount not less than the amount of the loan.
Is free.
This mortgage in the Czech Republic is valid for certain properties.
The program is intended for the purchase of real estate in the Czech Republic for an individual with a visa - a residence permit or permanent residence in the Czech Republic. The ability to consider a loan before making a reservation and searching for a property, so that you are 100% sure that you will get a mortgage.
Mortgage term 10-28 years (up to 75 years). If an individual is 50 years old, then the maximum mortgage will be given for 25 years.
Interest rate 4.79% per annum (fixed upon signing the loan agreement).
maybe early repayment loan without penalties in accordance with the term , i.e. 1 time in 2-3-5 years.
The mortgage right of the bank on real estate.
Real estate insurance against natural and other disasters for an amount not less than the amount of the loan.
Real estate appraisal – from 4.000 CZK.
Bank registration services - 1% of the mortgage amount (maximum CZK 15,000).
Others (certification of documents, extracts).
Required documents from the client:
Taking a bank loan for a resident of the post-Soviet space is not an easy decision. It seems to us that we will overpay for real estate or for something else a lot of money and will inevitably be ruined.
But this is true only in the territory of the post-Soviet space. The Czech Republic, always free in spirit, has long operated with European concepts, and for Europe, taking a loan to buy real estate is a common thing. It can even be said that it is a commendable thing - by taking a loan and paying very small interest, a citizen helps his economy, not to mention his beloved. For this reason, a person who is going to live in Europe, in the Czech Republic, for example, would have to take care of his "credit" history.
Strange as it may sound to our ears, a person who takes a loan from a bank to buy real estate, furniture, a car is considered trustworthy in Western countries. By the way, he is more willing to be granted residence permit and permanent residence in the Czech Republic.
Since this year, Czech banks have seen another profitable opportunity for themselves - to provide loans to foreigners for the same favorable conditions as well as citizens of the Czech Republic. Everyone probably already knows that mortgages in the Czech Republic are currently given to foreigners not only if the property is purchased for a company in the Czech Republic, but also if they buy housing for an individual. Because since May 2009, foreigners can buy real estate in the Czech Republic for themselves, as an individual.
Target: Favorable financing for the purchase of real estate in the Czech Republic by citizens of Russia and the CIS countries.
Maximum lending volume: Loan up to 60% of the value of the property, if the transaction amount is up to 5,000,000 CZK (192,000 euros). If the transaction amount exceeds 5,000,000 kroons, then the loan amount can be up to 50%.
Minimum loan amount: 300,000 crowns.
Loan maturity: Up to 30 years old or until the borrower reaches the age of 75 years.
The maximum possible age of the borrower: 71 years. If at the time of the transaction the age of the borrower exceeds 45 years, then the mortgage loan is granted for the number of years left until the borrower reaches the age of 75 years.
Loan security: A pledge agreement is concluded for the acquired property with an official notarized record, as well as an agreement for all possible insured events.
Mortgage interest A: The interest ranges from 2.89% to 3.74% per annum and depends on the specific property. The term for fixing interest is set at 5 years, after the expiration of the fixing period, you can pay off the loan without sanctions.
Extraordinary payments: Extraordinary payments in the amount of 25% of the loan amount are allowed once every 12 months.
The term for consideration of documents by the bank is 1 month.
The deadline for signing documents after the approval of the loan by the bank is 1 month.
Total costs are from 53.900 crowns. (Approximately 1990 euros).
The documents provided by the applicant are not checked in the country of origin!
The main advantage in obtaining a mortgage in the Czech Republic according to this scheme, in addition to low credit rate, is the possibility of buying without having a residence permit or permanent residence and without providing a credit history in your country!
We guarantee the receipt of a mortgage loan!
Mortgages are 20 years old this year in the Czech Republic. For 20 years, the average annual rate on a loan has decreased from 15% to a record 2.65%.
Yes, you heard right: this year, the mortgage rate has dropped to 2,65% , but in the Czech Republic you can get a loan even for 1,81% per annum.
Mortgage loans in the Czech Republic are issued by banks and financial brokers. Mortgages are usually given 5-30 years old for the amount of 10000 Euro to 400000 thousand Euro. The maximum amount for which a mortgage is issued is 85%-90% , you can even find banks that will give 100%, but this is rare and the interest rate will not be so tasty. But it is better to track the shares of various banks, especially in summer there are good propositions with excellent conditions. But, there are some pitfalls, before you sign an agreement with a bank, you need to find out and read all the conditions of the bank, what will be the cost of maintaining an account, how the loan will be repaid, is it possible to change the interest rate, and so on.
Mortgages in the Czech Republic are of the following types: mortgages without proof of income, mortgages of the American type, mortgages of the Australian type, combined mortgages with life insurance, mortgages in the form of rent, mortgages in the form of a conventional loan.
Who can get a mortgage loan? A mortgage loan can be obtained by an adult citizen of the Czech Republic, as well as Foreigners who have Permanent residence or residence permit. You just need to prove that you are employed, or you have a business, legal income from work, rent, or from any benefits. It would also be nice to have a good credit history without jambs. It is very good if you have a bank account in the bank that gives you a loan, because. then the bank can see the movement in your account.
It was very profitable to take a mortgage in Prague, especially 10 years ago. Apartments have risen in price over this period. 2 times, and if we take into account that during this time the Krona has grown very much (at least 3 times) in relation to the ruble, then the gain could be fabulous. But even compared to last year, apartments on average rose by 7% . If we translate 7% into money, then apartments in Prague have risen in price by 10000 Euro in a year. The real estate market in Prague is quite lively and brisk, about 5,000 apartments are sold annually, only illiquid assets are sold for a long time. Therefore, even if you took an apartment on a mortgage, after a few years it has risen in price, you can sell it, pay off the loan, and earn normally.
In addition, if you moved to the Czech Republic, then why pay for renting an apartment if you can take an apartment on a mortgage and pay the bank a smaller amount every month than the monthly rent costs.
At the end of the post, I can say that the Czech economy last years has grown quite a lot, wages have risen, which is why real estate is becoming more expensive, and the conditions for buying an apartment are simply fabulous.
If you are interested in buying or renting real estate in Prague or another city in the Czech Republic, we can recommend you a reputable company that has been operating in the Czech market for over 10 years, just . The company provides property selection services at the best price, services for the sale and rental of your property in the Czech Republic. Russian-speaking experts will offer you real estate that is not available on other sites on the Internet, thanks to access to closed bases and special offers, as well as sale at developer prices.
The firm will help you buy real estate in new buildings and on the secondary market. She has offices in major cities of Russia and Ukraine: in Moscow, St. Petersburg, Kyiv, Odessa and not only, where you can go in person if necessary and ask all your questions to a specialist.
Terms mortgage lending for foreigners in the Czech Republic differ from the conditions for citizens of the country - foreign buyers can get a mortgage if they have permanent residence. You can also apply for a mortgage loan entity.
Since 2009, Russians can buy real estate in the Czech Republic for an individual. Russian citizens, as a rule, pay for the purchase of real estate in the Czech Republic without the help of a mortgage loan, but there are also buyers who resort to this method. Foreigners can apply for a mortgage for their own company registered in the Czech Republic, or for an individual with a residence permit.
Mortgage rates when applying for a loan for an individual will average 2.8-3.5% per year, and for a legal entity - 3.5-5.5%.
The term for fixing a mortgage, when it is impossible to change the terms of credit either from the side of the bank or from the side of the borrower, as a rule, is one year, three years or five years and can be up to 10 years. The interest rate also depends on this period. With a fixation period of up to one year interest rates will be 2.8-3.1%, for three years - 4.2-4.6%, for five years - 5.5-6.5%, up to ten years - 5.5%.
In addition, the amount of bets will depend on the size down payment and mortgage repayment period.
Obtaining a mortgage in the Czech Republic takes place in two stages - the decision of the bank to grant a loan and the transfer of money to the account of the buyer of real estate. The actual processing of the loan takes about two to three weeks, excluding the preparation of documents.
General requirements of banks
The minimum mortgage loan amount for individuals is 12,000 euros, and for legal entities - 40,000 euros.
Foreigners can be granted a mortgage loan in the amount of up to 50-70% of the appraised value of the purchased property, which is usually lower than the market value. Mortgages, as a rule, are given for a period of 5 to 30 years, with the condition that it be paid before the age of the borrower reaches the age of seventy.
The decision to grant a loan is also influenced by the assessment of the liquidity of the object by the bank. For example, the chances of getting a mortgage increase when buying property in Prague, Karlovy Vary or Brno.
Required package of documents
The bank needs to obtain documents from the borrower confirming its reliability and solvency. First you need to find out the requirements of banks, and then start collecting documents.
In case of registration of a mortgage for a foreign private person:
Passport and another document confirming the identity of the borrower, such as an internal passport, birth certificate or driver's license;
- a document confirming the permission to permanent residence in the country;
- documents confirming the solvency of the borrower (certificate of salary form 2NDFL, real estate lease agreement, etc.) Income can come from different sources. The solvency of the borrower is assessed on the basis of income that can be received outside the Czech Republic.
- bank statement for three months showing regular receipts Money. The monthly amount of receipts must cover the mortgage payments for the month and living wage installed in the Czech Republic.
Some banks may require foreigners to provide an extract from the register of debtors, from bank registers and a certificate from the tax office on the absence of debt.
If a mortgage loan is issued to a company registered in the Czech Republic, then you must provide:
Company registration extract from the trade register;
- registration sheet (extract from the Commercial Court for a legal entity, in which foreign citizen is a founder);
- foreign passport of the founder and another document confirming the identity of the borrower;
- reference from tax service on the absence of debts of a legal entity;
- a so-called targeted mortgage loan can also be issued, which is issued for a new, newly created company, without proof of income, when buying an apartment building or hotel.
Additional expenses
In addition to covering interest and paying the body of the loan, obtaining a mortgage in the Czech Republic is accompanied by additional costs. Among them:
Appraisal of an apartment or house will cost from 100-200 euros;
- insurance of the property is mandatory when taking a mortgage loan. Annual property insurance will cost approximately 20 to 100 euros and up to 3,000 euros for a hotel. Taking out insurance for the borrower is an optional but desirable condition.
- payment for services provided by the bank will be for legal entities from 0.2% to 1% of the amount of the requested loan, for individuals - about 80 euros (depending on the current prices of banks).
- certification of documents and their copies in a notary;
- translation of documents (approximately 10 euros per page);
- opening a company costs about 2,000 euros. The legal entity must be registered as a limited liability company (S.R.O.)
Mortgage payment
Payments for mortgage loans in the Czech Republic must be produced in accordance with loan agreement: monthly or quarterly from an account opened in a Czech bank until the loan is fully repaid. After the expiration of the mortgage fixation period, the borrower can re-register the loan at another bank with more favorable mortgage rates or transfer it from a legal entity to an individual. The property will be pledged to the bank until the full payment of the mortgage.
You can repay the loan in full ahead of schedule, and no penalty will be charged if this is agreed in advance in the loan agreement.
The site thanks Anton Titov from Svoboda Williams, Evgeniy Rusnak from Prosto Real s.r.o., Victoria Kostebelova from Sun Power EU s.r.o. and Olga Goryachkina from Rentsale for participation in the preparation of the material.
