Konsumkredit in der Tschechischen Republik

Wie bekomme ich in der Tschechischen Republik einen Kredit?

Das Leben in der Tschechischen Republik kann neue finanzielle Herausforderungen mit sich bringen. Eine davon könnte die Notwendigkeit eines Kredits sein. Als EU-Mitglied ohne festen Wohnsitz einen Kredit zu erhalten, kann schwierig sein, aber mit etwas Planung und Informationen kann es machbar sein. Hier sind einige Schritte, die Sie unternehmen können:

Deutsche, österreichische Staatsbürger:
Obwohl Bürger aus EU-Ländern ohne Aufenthaltserlaubnis in den tschechischen Arbeitsmarkt eintreten können, verlangen Banken einen Mindestaufenthalt von nur 6 Monaten. Einige Banken akzeptieren einen vorübergehenden Aufenthalt nur, wenn Sie ein Bankkonto mit Gehaltsüberweisung für mindestens 6 Monate haben. Derzeit gibt es nur zwei Banken, die Kredite an deutsche oder österreichische Staatsbürger ohne festen oder vorübergehenden Aufenthaltsstatus vergeben.

Arbeitnehmer – Arbeitsvertrag:
Banken verlangen von ihren Kunden ein stabiles Einkommen und langfristige Arbeitsverträge. Ideal ist ein unbefristeter Arbeitsvertrag mit einer Laufzeit von mindestens einem Jahr. Ein Kredit kann jedoch auch schon nach 3 Monaten beantragt werden.
Eine Kreditgenehmigung ist auch für befristete Arbeitsverträge möglich, wenn diese mindestens 1 Jahr laufen und mindestens einmal verlängert wurden. Bei befristeten Arbeitsverträgen dürfen bis zum Ende der Gültigkeit nicht weniger als 3 Monate verbleiben. Das Gehalt muss immer auf Ihr Bankkonto überwiesen werden. Akzeptieren Sie niemals Gehalt in bar.

Gewerbe – Steuererklärung:
Als ausländischer Unternehmer ist es sehr schwierig, einen Kredit zu bekommen. Die Kriterien sind viel strenger und es hängt hauptsächlich von der Höhe des Nettoeinkommens nach Steuern und nach Abzug der Sozial- und Krankenversicherungsbeiträge ab. Banken verlangen, dass das Geschäft mindestens seit einem Jahr besteht.

Personal ID number “rodné číslo”: Das Fehlen einer Personalausweisnummer verringert die Chance, einen Kredit zu erhalten. Bitten Sie daher zunächst das Innenministerium, Ihnen eine Personalausweisnummer zuzuweisen. Bitte beachten Sie, dass Sozialversicherungsnummer und Krankenversicherungsnummer nicht dasselbe sind.

Verbessern Sie Ihre Kreditwürdigkeit:
Um Ihre Kredithistorie zu verbessern, eröffnen Sie zunächst einen kleinen Kredit. Der beste Weg, an Ihrer Kredithistorie zu arbeiten, besteht darin, zunächst eine Kreditkarte oder einen Überziehungskredit auf einem Bankkonto zu eröffnen. Idealerweise mit einem kleinen Limit, z. B. 10.000 CZK. Beantragen Sie niemals zunächst einen großen Kredit mit einer langfristigen Laufzeit.
Falls Ihr Antrag von der Bank abgelehnt wird, versuchen Sie niemals sofort erneut, einen anderen Kredit mit denselben Parametern zu beantragen. Abgelehnte Anträge werden im Kreditbüro der Tschechischen Bank erfasst. https://cbcb.cz. Drei abgelehnte Anträge bedeuten eine Sperre für die nächsten 6 Monate!

Zahlungsverlauf:
Bezahlen Sie Ihre Zahlungen immer pünktlich. Ihre Bank überprüft Ihre Zahlungshistorie auch bei Nichtbanken und Telefonanbietern (Vodafone, O2, T-Mobile) oder Stromversorgern (E.ON Energie, ČEZ, Innogy). Eine Übersicht Ihrer Zahlungshistorie erhalten Sie bei solus.cz

Einnahmen – Ausgaben:
Ihr Einkommen muss für die Rückzahlung des Kredits ausreichen. Nach Abzug der regelmäßigen monatlichen Ausgaben (z. B. für Miete, Energie, Lebensmittel, Medikamente, Telefon, Internet, Kindergarten) muss ein ausreichender Betrag für die Rückzahlung plus Rücklagen übrig bleiben. Die Bank wird immer einen Mindestbetrag für die Lebenshaltungskosten abziehen.

Angebote vergleichen – effektiver Jahreszins (RPSN)
Nehmen Sie nicht das erste Angebot an, das Sie erhalten. Vergleichen Sie verschiedene Optionen und Konditionen verschiedener Banken und Finanzinstitute, um das beste Angebot für Ihre Bedürfnisse zu erhalten. Zum Vergleichen verwenden Sie am besten den effektiven Jahreszins (APR), auf Tschechisch RPSN genannt. Der effektive Jahreszins stellt die Gesamtkosten der Kreditaufnahme dar, einschließlich Zinsen und Gebühren, angegeben als jährlicher Prozentsatz, und hilft Kreditnehmern, Kreditangebote effektiv zu vergleichen

Research Local Banks:
Every bank has its own rules and processes for granting loans to foreigners. Find out which banks or financial institutions are willing to provide loans to foreigners. Our role is to save your time as we regularly collect information about terms.

Quick loan for expats

Bank don’t ask what you will use the money for

We apply for a loan together easily and conveniently via the Internet. No paper documentation. After visiting the branch where you will sign the contracts, the bank will immediately send the money to your account. Quick loan is usually approved within 24 hours

Credit range:  20.000 to 800.000 Kč

Required documents:
  – National passport
  – Czech residence card 
  – Personal ID number “rodné číslo”
  – Three bank statements

Main rules to be accepted:

– Provable income sent to Czech bank account (regular monthly salary with tax domicile in Czech Republic, ideally unlimited employment contract or limited empl. contract longer then one year)

Description
Quick loan is credit that is typically used by individuals to finance personal expenses, such as a car, a home renovation, or to pay for education. Bank will open personal bank account to pay.

Extra payment is possible

Quick loan can by paid earlier at any time without fees, client will save future interest. 

No Security
There is no requirement for security by real estate property. 

Tips: how to avoid being rejected by bank:

Anyone can apply for a loan. But it will be obtained only by those who meet the conditions set by the bank or to obtain it. The bank can reject the applicant without giving a reason, there is no right to grant the loan. In these situations bank will always reject the application for credit:

– being in testing period in job
– using overdraft to a bank account – negative balance, late payment
– playing betting and gambling games
– using sick leave at the time of the loan application
– loan rejection 3 times in a row, 4 applications will be automatically rejected
– missing bank account, having cash income

Quick loan is credit of traditional bank acting on Czech market

चेक गणराज्य में भारतीय लोगों के लिए उपभोक्ता ऋण

चेक गणराज्य में भारतीय लोगों के लिए उपभोक्ता ऋण Consumer Loans in Czech Republic

**चेक गणराज्य में विदेशी के रूप में ऋण कैसे प्राप्त करें?**

भारत के नागरिकों का स्वागत है कि वे चेक गणराज्य में काम करें, और बैंक उपभोक्ता ऋण प्रदान करने की अनुमति देते हैं। किसी अन्य देश में जहां आप काम करते हैं, वहां एक अप्रवासी के रूप में क्रेडिट प्राप्त करना चुनौतीपूर्ण हो सकता है, लेकिन कुछ योजना और जानकारी के साथ, यह संभव हो सकता है। यहां कुछ कदम दिए गए हैं जो आप उठा सकते हैं:

**कर्मचारी – नौकरी अनुबंध:**
बैंक क्लाइंट की आय की स्थिरता और दीर्घकालिक नौकरी अनुबंध की आवश्यकता होती है। आदर्श स्थिति यह है कि एक अनिश्चित अवधि के लिए रोजगार अनुबंध कम से कम एक वर्ष के लिए चल रहा हो। हालांकि, 3 महीने बाद ऋण के लिए आवेदन करना संभव है।
नियत अवधि के रोजगार अनुबंध के लिए ऋण स्वीकृति भी संभव है, यदि यह न्यूनतम 1 वर्ष के लिए चल रहा हो और यदि इसे कम से कम एक बार बढ़ाया गया हो। नियत अवधि के रोजगार अनुबंध के लिए, वैधता के अंत तक 3 महीने से कम नहीं होने चाहिए। वेतन को हमेशा आपके बैंक खाते में भेजा जाना चाहिए। वेतन नकद में कभी न स्वीकारें।

**दस्तावेज़ और कार्य परमिट:**
अधिकांश बैंक एक मान्य पहचान दस्तावेज़ और यह प्रमाण मांगेंगे कि आप उस देश में कानूनी रूप से नियोजित हैं, जहां आप ऋण के लिए आवेदन कर रहे हैं। सुनिश्चित करें कि आपके पास सभी आवश्यक दस्तावेज उपलब्ध हैं। बैंक स्थायी चेक निवास वाले ग्राहकों को पसंद करते हैं; हालांकि, अपवाद संभव हैं।

**कार्य वीज़ा के साथ भारतीय नागरिक:**
हालांकि अधिकांश बैंक भारतीय नागरिकों से स्थायी निवास की मांग करते हैं, वर्तमान में, रायफाईजनबैंक भी कार्य वीज़ा स्वीकार करता है। अधिकतम परिपक्वता अवधि 3 साल तक सीमित है।

**अस्थायी निवास के साथ भारतीय नागरिक:**
केवल रायफाईजनबैंक 3 साल तक की परिपक्वता अवधि के साथ ऋण प्रदान करता है।

**स्थायी निवास के साथ भारतीय नागरिक:**
स्थायी निवास के साथ, कोई प्रतिबंध नहीं है, और सभी बैंक मानक शर्तों के साथ ऋण प्रदान करने में सक्षम हैं।

**व्यक्तिगत पहचान संख्या (Personal ID Number):**
व्यक्तिगत पहचान संख्या की अनुपस्थिति से ऋण प्राप्त करने की संभावना कम हो जाती है; इसलिए, सबसे पहले, आंतरिक मंत्रालय से व्यक्तिगत पहचान संख्या आवंटित करने के लिए कहें। कृपया ध्यान दें कि सामाजिक सुरक्षा संख्या या स्वास्थ्य बीमा संख्या समान नहीं है।

**अपने क्रेडिट इतिहास में सुधार करें:**
अपने क्रेडिट इतिहास में सुधार करने के लिए, पहले छोटा क्रेडिट खोलें। क्रेडिट इतिहास पर काम करने का सबसे अच्छा तरीका है कि एक क्रेडिट कार्ड या बैंक खाते में ओवरड्राफ्ट खोलें, आदर्श रूप से e.g. 10,000 CZK की सीमा के साथ। पहले बड़े ऋण के लिए कभी आवेदन न करें!
यदि आपको बैंक द्वारा अस्वीकार कर दिया गया है, तो कभी भी उसी मापदंडों के साथ फिर से ऋण के लिए तुरंत आवेदन न करें। अस्वीकार किए गए आवेदनों को चेक बैंक क्रेडिट ब्यूरो में दर्ज किया जाता है। तीन अस्वीकार आवेदनों का मतलब अगले 6 महीनों के लिए रोक है!

**भुगतान इतिहास:**
हमेशा अपने दायित्वों का समय पर भुगतान करें। बैंक गैर-बैंकिंग प्रदाताओं और टेलीफोन ऑपरेटरों (वोडाफोन, ओ2, टी-मोबाइल) या बिजली वितरकों (ई.ओ.एन एनर्जी, ČEZ, इनोगी) के साथ भुगतान इतिहास की पुष्टि करते हैं। आप solus.cz से अपने इतिहास के साथ एक बयान प्राप्त कर सकते हैं।

**आय – खर्चे:**
आपकी आय ऋण के भुगतान के लिए पर्याप्त होनी चाहिए। नियमित मासिक खर्चों (e.g. किराए, ऊर्जा, भोजन, दवाइयों, फोन, इंटरनेट, बालवाड़ी) को घटाने के बाद, पुनर्भुगतान के लिए एक पर्याप्त संतुलन और रिजर्व होना चाहिए। बैंक हमेशा जीवन लागत के लिए न्यूनतम राशि घटाएंगे।

**प्रस्तावों की तुलना करें – APR:**
पहले प्राप्त किए गए प्रस्ताव को स्वीकार न करें। विभिन्न बैंकों और वित्तीय संस्थानों से विभिन्न विकल्पों और शर्तों की तुलना करें ताकि आपकी आवश्यकताओं के लिए सबसे अच्छा सौदा प्राप्त किया जा सके। तुलना के लिए सबसे अच्छा तरीका वार्षिक प्रतिशत दर (APR), चेक में RPSN कहा जाता है, का उपयोग करना है। APR उधारी की कुल लागत का प्रतिनिधित्व करता है, जिसमें ब्याज और शुल्क शामिल हैं, जो एक वार्षिक प्रतिशत के रूप में प्रस्तुत किया जाता है, जिससे ऋण प्रस्तावों की प्रभावी रूप से तुलना करने में सहायता मिलती है।

चेक गणराज्य में ऋण प्राप्त करना कुछ धैर्य और प्रयास की आवश्यकता हो सकती है, लेकिन अच्छी योजना और हमारे अनुभव के साथ, आप अपने वित्तीय लक्ष्यों को प्राप्त कर सकते हैं। 

Czech mortgage market II. quarter 2024

Despite the CNB’s falling rates, mortgages are stagnating. The Czech National Bank has repeatedly responded to the improving economic situation in the Czech Republic by reducing the price of money for mortgages. In the second quarter, it relaxed monetary policy three times in total, when it set the 2T repo rate to 4.75%. Despite this easing, mortgage rates have only fallen cosmetically.

The revival of the real estate market and the increase in the volume of mortgages provided do not create significant competitive pressure on banks. One of the reasons why mortgages do not decrease is the dissatisfaction of banks with the new amount of the penalty for early repayment of the loan in the maximum amount of 1%. Banks are using the current period to increase the risk margin to dissolve the early repayment costs on all clients.

Due to the long-term price of money, more precisely the amount of interest rate swaps for 3 and 5 years, even after the date 1.9.2024, when the banks will apply new sanctions, it is not possible to expect a sharper drop in mortgage interest rates. Interest rate swaps then affect the long-term price of money, while the two-week repo rate has a direct effect especially on 1-year fixes.

source Patria.cz

The recovery of the Czech mortgage market continues
The greatest real estate activity usually occurs in the spring, which also corresponds to the increase in the volume of mortgages provided, when in II. quarter 2024 a total of CZK 69.8 million was provided (April CZK 21.9 million, May CZK 23.7 million, June CZK 24.2 million). These are new mortgages and refinancing of existing loans.

June inflation reaching the target of 2% creates further scope for a reduction in the price of mortgage sources by the CNB, as well as expectations of a decrease in interest rate swaps. According to the representatives of the bank board, we can expect monetary policy to be relaxed at each subsequent meeting until the end of the year. 4 more monetary policy meetings are planned before the end of the year.

Mortgage index
The mortgage index consisting of interest rates on newly granted mortgages without refinancing reached 5.06% p.a. in June 2024.

Average mortgage II. quarter 2024:  the average amount of the mortgage increased by CZK 298,191 in the second quarter, when it rose from CZK 3,441,874 in March to CZK 3,740,065, breaking the previous record from November 2021 (CZK 3.46 million), on the contrary, the lowest level was reached in January 2024 (CZK 2.83 million).

Limitation of 10 year fixations
The rates of 10-year fixings are stagnant or some banks stop providing them altogether. For example, a 10-year fixed mortgage can currently only be found at MONETA Money Bank, ČSOB, Raiffeisenbank and ČS, while other banks have decided to remove this product from their offer. The end of 10-year fixations reflects an amendment to the Act on Consumer Credit, which established a maximum penalty of 1% for early repayment by the client.

Mortgage rates summer 2024
The monetary policy of the CNB helps to deepen the recovery of the real estate market. Developers are preparing new projects and renewing suspended projects in the field of residential real estate. Banks, which benefit from the increased interest in mortgages, are therefore in no rush to offer significant discounts.

The adopted strategy thus continues to be individual non-public negotiation of rates, which primarily concerns clients with a high credit rating or a requirement for an above-average mortgage. An example of this strategy is the new -0.2 discount at ČSOB for clients with an income higher than CZK 60,000.

How to get loan in Czech as foreigner?

How to get a loan as a foreigner working in Czech Republic?

Living abroad can bring new financial challenges. One of them might be the need for a loan. Obtaining a credit as an expatriate in another country where you work can be challenging, but with some planning and information, it can be achievable. Here are a few steps you can take:

Research Local Banks:
Every bank has its own rules and processes for granting loans to foreigners. Find out which banks or financial institutions are willing to provide loans to foreigners. Our role is to save your time as we regularly collect information about terms.

Employee – Job Contract: 
Banks require stability of client’s income and long-term job contracts. Ideal situation is an employment contract for an indefinite period running at leas one year. However for loan is possible to apply after 3 months.
Loan approval is also possible for a fixed-term employment contract, if is running min. 1 year and if it was min. once extended.  For a fixed-term employment contract, there must not be less than 3 months until the end of validity. Salary has to always be send to your bank account. Never accept salary in cash.

Business – Tax declaration:
Getting a loan as a foreign entrepreneur is very difficult, the criteria are much stricter and it depends mainly on the amount of net income after taxation and after deduction of social contributions and health insurance. Banks require at least 2 years of existing business.

Documents and Work Permit:
Most banks will require a valid identity document and proof that you are legally employed in the country where you are applying for a loan. Make sure you have all the necessary documents available. Banks prefer clients with permanent Czech residence, however exceptions are possible.

EU citizens:
Although citizens from EU countries can enter the Czech labor market without obtaining any residence permit, banks require min. temporary stay. Some banks accept temporary residence only in case you have bank account with salary domiciliation min. 6 months.

Non-EU citizens:
Temporary residence: a limited number of banks allows citizens from outside the EU to obtain a loan on the basis of temporary residence. Salary domiciliation min. 6 months is required. 
Working visa: there is currently only one banks supporting clients with working visa. The maximum maturity period is limited up to 3 years.

Personal ID number “rodné číslo”: absence of personal ID number reduce chance to get loan, therefore ask first the Ministry of the Interior to assign a ID number. Please be aware that social security number or number of health insurance is not the same.  

Improve Your Credit History:
To improve your credit history open first small credit, the best way to work on credit history is start by opening credit card or overdraft to bank account. Ideally with limit e.g. 10.000 CZK. Never apply for big loan with long-term first!
In case you are rejected by bank, never try immediately apply again in another loan for the loan with the same parameters. Rejected applications are recorded in the Czech Bank Credit Bueau. Three rejected applications mean stop for next 6 months!

Payment history:
Always pay your obligations on time, bank verify payment history also with non banking providers and Telephone operators (Vodafone, O2, T-Mobile) or Electricity distributors (E.ON Energie, ČEZ, Innogy). You can get a statement with your history from solus.cz 

Income – Expenses:
Your income must be sufficient for payment of the loan. After deducting reguraly monthly expenses (e.g. for rent, energies, food, medicaments, phone, internet, kindergarten) there must be sufficient balance for repayment plus reserve. Bank will always deduct minimum amount for life cost. 

Compare Offers – APR:
Don’t accept the first offer you receive. Compare different options and terms from various banks and financial institutions to get the best deal for your needs. For comparison is the best way use Annual Percentage Rate (APR), in Czech called RPSN. The APR, or Annual Percentage Rate, represents the total cost of borrowing, incorporating interest and fees, presented as an annual percentage, aiding borrowers in comparing loan offers effectively.

Have Clear Financial Goals:
Before applying, clearly establish how much money you need and how long you will need to repay the loan. This will help you choose the right type of loan and optimize the terms.

Getting a loan in Czech Republic may require some patience and effort, but with good planning and our experience you can achieve your financial goals.

Mortgage market I. quarter 2024

There is assumed that the situation on the mortgage market will continue to improve in 2024. This improvement started slightly last year and the data for the first quarter of 2024 confirms the recovery of real estate activity in all parameters. The Czech National Bank responds to a series of favorable economic results and stabilization of the price level by further reducing the price of money for mortgages.

The beginning of the year is usually a period of lower activity. The January decrease in the volume of mortgages granted to CZK 11 billion, i.e. by 13%, is therefore not a signal of a change in trend. On the other hand, January inflation reaching 2.3% created further scope for the CNB to reduce the price of mortgage sources. In March, mortgage loans already exceeded CZK 18 billion, and the recovery is still continuing. Inflation has stabilized at the required target of 2.0%, but the CNB is only very cautiously reducing reference rates so far (in March 2T repo rate 5.75%, lombard 6.75%).

Mortgage index
The mortgage index consisting of interest rates from newly granted mortgages without refinancing reached 5.51% p.a. in February 2024.

Average mortgage I. quarter 2024: the average mortgage amount increased by CZK 29,452 in the first quarter, when it rose from CZK 3,412,422 in January to CZK 3,441,874 in March. The historically highest average mortgage was reached in November 2021 (CZK 3.46 million), while the lowest level was reached in January 2024 (CZK 2.83 million).

Limitation of long-term fixations
The rates of long-term fixations are stagnant or some banks stop providing them altogether. For example, a 10-year fixed mortgage can currently only be found at MONETy, ČSOB, Raiffeisenbank and ČS, while other banks have decided to remove this product from their offer. The twilight of long-term fixations is a response to the amendment to the Act on Consumer Credit, which determined exactly what sanctions the bank can demand from 1 September 2024 for early repayment by the client.

Mortgage rates spring 2024
The monetary policy of the Czech National Bank creates positive expectations among commercial banks, developers and end clients. Another rate cut will be discussed at the next monetary meeting on March 20, 2024, with the 2T repo rate expected to drop by 0.5 to 0.75%.

This expectation is already beginning to be reflected in the preparation and planning of new real estate projects, bringing more stability and confidence to the mortgage market. This trend is also reflected in the gradual decline of announced, i.e. price, loan rates, which reduces financing costs and supports the availability of mortgage loans for a wider range of clients.

Banks, as part of individual negotiations, are increasingly allowing clients with high creditworthiness to obtain non-public discounts. Traditionally, development projects and loans with a high volume are supported by additional discounts. This trend is observable across the entire financial sector and brings benefits for both parties – banks maintain their competitiveness and clients gain access to more favorable terms for financing their projects.

Bank statistic
The year-on-year growth rate of loans rose from 4.9% in February to 5%, while corporate loans also rose by a tenth of a percentage point to 10.7%, consumer loans (+8.5%) and loans remained unchanged in the year-on-year growth rate for housing (+ 4.2%). Interest in mortgages is rising, the number of new loans agreed is growing, in financial terms from 10.3 billion CZK a year ago to 15.45 billion in March this year.

Czech credit bank register

In today’s digital economy, ensuring the security and reliability of financial transactions is paramount. Bank register evidence plays a crucial role in verifying transactions, resolving disputes, and ensuring legal compliance. Here’s why it matters and how to maintain it effectively:

Verification: Bank registers provide concrete evidence of transactions, ensuring transparency and trust between parties.

Dispute Resolution: Detailed records help resolve disputes quickly and protect interests in case of discrepancies.

Legal Compliance: Maintaining accurate financial records fulfills regulatory obligations and safeguards against audits.

Transparency: Access to detailed records builds trust with customers, enhancing business credibility.

Creditworthiness: Businesses with well-documented transactions demonstrate financial responsibility, improving their creditworthiness.

Best practices include recording every transaction promptly, ensuring accuracy and detail, regular reconciliation, secure storage, and maintaining a clear audit trail.

In conclusion, bank register evidence is essential for secure credit sales, providing assurance, transparency, and credibility in financial transactions.

Information banks share about clients:

Summary of contracts in evidence:

Responsible financing for expats

Looking for the optimal fair play loan for your needs? Look no further and take advantage of our brokerage services! We are your partner in the financial world, opening doors to fair and transparent bank loans.

We provide you exclusive access to loans from multiple banks. Through our partnerships, we can search for the most advantageous offers with optimal conditions for you. With us, you have the opportunity to compare and choose from a diverse range of bank loans without the trouble of gathering information from each bank individually.

Fair and transparent fees are our hallmark. We only collaborate with traditionals banks that share our values of transparency and fair dealings. Forget about hidden costs and predatory practices! With us, you get a bank loan that aligns perfectly with your financial goals and repayment capacity.

Responsible financing

Banking institutions, following responsible lending principles, thoroughly assess an individual’s creditworthiness. Loans are not granted to those who do not meet the prerequisites for regular repayments, such as lacking a stable income or managing multiple loans simultaneously. Reputable lenders refrain from offering loans with excessively high fees for contract closure, account maintenance, early repayment penalties, and more. Unscrupulous practices like blank promissory notes or exorbitant charges for customer service calls are not employed.

In cases where a borrower faces difficulties in repayment, a responsible lender provides guidance, assists in creating a new repayment schedule, or temporarily defers payments.

Opt for simplicity, efficiency, and security. Our brokerage services make it easy for you to find the ideal bank loan. Achieve your goals with us and enjoy worry-free financing provided through our exceptional banking partners!”

 We intermediate only credit of traditional bank acting on Czech market

Consumer loan for foreigners

Foreigners, with Czech resident or not, can legally get own consumer credit from commercial bank.

Retail banks offer different type of private credits, the most popular are “Consumer loan for anything“, “Loan for housing“, Car credit” and “Consolidation” of old loans. “Mortgage loan„ represents the best product how to finance purchase of real estate property for own living.

Credit range:
Consumer loan for anything – there is no requirement of bank to prove how money will be spent, quick settlement up to 2 days, maximum amount 800.000 CZK, maturity 8 years, the highest interest rate. 
Loan for housing – for investment in the real estate, e.g. for reconstruction, requirement declare purpose of using money, settlement up to 5 days, maximum amount 1 mil. CZK, lower interest rate, maturity up to 10 years. 
Consolidation – consolidate several old loans an reduce current expenses in one monthly payment, lower interest rate based on credit history, maturity up to 10 years. 

Basic rules:
There is general overview of elementary bank conditions how to get consumer credit, each bank can has additional individual conditions e.g. minimum income. 

Basic rules for non-residents to be accepted:
– Provable income in CZK currency (regular monthly salary witch tax domicile in Czech Republic, ideally unlimited employment contract or limited empl. contract longer then one year)

– or be married with czech partner having income in Czech Republic

– or has co-applicant with the income in Czech Republic

The best way how to apply for credit is to use one of the top traditional international bank however some small czech bank can offer individual benefits.

Description
consumer loan is a type of loan that is typically used by individuals to finance personal expenses, such as a car, a home renovation, or to pay for education. Consumer loans can be secured or unsecured, depending on the lender and the borrower’s creditworthiness.

Consumer loans can be obtained from a variety of sources, including banks, credit unions, online lenders, and peer-to-peer lending platforms. The terms and conditions of the loan, including the interest rate, repayment period, and fees, vary depending on the lender and the borrower’s creditworthiness.

Secured consumer loan
A secured consumer loan requires collateral, which is usually an asset such as a house or a car that the borrower owns. If the borrower fails to repay the loan, the lender can seize the collateral to recover their money. An unsecured loan, on the other hand, does not require collateral, but the interest rates tend to be higher, and the borrower’s creditworthiness plays a bigger role in the approval process.

We intermediate consumer loans only from traditional banks acting on Czech market!

Mortgage market 2023

According to the plans announced by the central bankers of the Czech National Bank (CNB) in 2023, the price of money will remain high, resulting in expensive mortgages. The CNB’s strategy is to maintain the 2T repo rate and control high inflation through foreign exchange interventions in the currency market. However, they may reduce the basic rate that directly determines mortgage prices in the third quarter of 2023.

The level of inflation, which reached 16.7% in February 2023, is the crucial factor for determining when to start the reversal. However, the passivity of central bankers makes it unlikely for inflation to improve quickly.

In 2022, the mortgage market activity decreased by over 60%, with financial institutions providing CZK 197 billion in housing loans. However, in December 2022, the year-on-year decline was significant at 82%, with only CZK 7.89 billion provided. According to the Czech Banking Association, the mortgage index, which consists of interest rates on newly granted mortgages without refinancing, reached 5.98% in December.

In the second half of 2022, the financing purposes structure changed, with a greater focus on the reconstruction of existing properties to achieve lower energy demand. Conversely, purchases of flats and family houses dramatically decreased, while refinancing accounted for less than 16% of the total.

Mortgage interest rates 2023

The monetary stability established by the CNB brings a sense of calm and transparency to the mortgage market, allowing commercial banks to better plan their business goals. Due to high trading margins and a sluggish mortgage market, negotiating discounts will become increasingly important for individuals seeking mortgages.

However, in the long run, mortgage interest rates in the range of 5.5-6.3 % per annum are expected to remain high.

Mortgage index

Average mortgage April 2023:
The average amount of the mortgage fell slightly below CZK 3 million, which reflects falling real estate prices and a stagnant real estate market.

Refinancing
Most banks usually offer interest rates for refinancing previously granted loans with lower rates against new mortgages. The ability to verify the client’s history allows banks to reduce the trading margin. It is currently possible to get rates from 5.59% p.a.

Mortgage market June 2022

The fall of the Czech mortgage market continues, the volume of mortgages granted in May increased slightly by 3.4% compared to April, but this seasonal growth is normal for May. Housing loans worth CZK 40.555 billion were provided in May, however, in a year-on-year comparison, the overall decrease remains around 60%.

The further cooling of the mortgage market reflects the significant tightening of the CNB’s monetary policy. At the last meeting of the bank board on 22.6. was decided on a draconian increase of the reference 2T repo rate by 1.25 percentage points, i.e. a change from 5.75% to 7.00% (corresponding to 1999 values).

Mortgage interest rates June 2022

The 7% threshold was already exceeded for the first time, so far only for 1 and 3 year fixations. However we can assume that bank offers will increasingly start at 7% even for longer-term fixations.

mBank was the first to even announce that the 8% threshold had been exceeded, i.e. for 1 and 3 year fixations for the time being. However the differences between the banks are deepening, and mBank with its approximately 2% market share is definitely not setting the trend for mortgages.

Most bankers expect rates to peak this year and predict a decline early next year. From July 1, 2022, the CNB will be managed by a changed bank board headed by Governor Aleš Michl, from whom many economists hope for a dovish change in course, i.e. a gradual end to the tightening of monetary policy. We will see if the development of the economic situation in the coming months will allow the new governor to turn the imaginary rudder.

Standard interest rates June 2022

Average mortgage May 2022:  the average amount of the mortgage in May remained almost unchanged, i.e. 3,166 thousand. CZK, but the average monthly mortgage payment increased.

Refinancing
Most banks usually offer interest rates for refinancing previously granted loans with lower rates against new mortgages. The ability to verify the client’s history allows banks to reduce the trading margin. It is currently possible to get rates from 5.34% p.a.

The CNB sent mortgages up on record

Czech National Bank announced an increase of basic repo rate by a record 1,25 points, up to 2,75%. Mortgage loans in Czech will significantly grow up. Bank council has decided to take radical step that has no period in Czech history, because of extreme high inflation rate.  The last set value of inflation for October was calculated according to the consumer basket at 4.9%. The expected inflation value will most likely continue to grow min. up to 6%.

Mortgage interest rates in 2022

As today’s increase in CNB rates was expected by banking strategists in the range of 0,5 – 0,75, mortgages may not increase in price by the same amount, as the expected change has already been reflected in the pricing of recent days. Partly in spite of the current price of resources, commercial banks have already been raising mortgage rates in recent weeks, also for strategic reasons, to have room for special discounts during the main season.

However at the beginning of year 2022, we expect that mortgage loans will be provided with rates starting from 4.69 – 5% for standard 3 and 5 year fixations. Buying long-term fixations for 7 and 10 years will no longer make economic sense.

Mortgage repayment growth in 2022

How will be effect changes in practical life? For the model mortgage of CZK 3 million, approaching the average amount, the monthly payment will increase by more than CZK 2.000. The maximum amount of available credit will then decrease by CZK 487.000.
The modeling was calculated for one applicant with a net income of CZK 30.000, without other credit obligations, and the maturity was set at 30 years.

Year 2021
# 3,49% monthly payment CZ 13.455,- max. amount of possible mortgage CZK 3.628.000

Year 2022
# 4,69% monthly payment CZ 15.541,- max. amount of possible mortgage CZK 3.141.000

Mortgage index:

 

Czech mortgage rates November 2021

During October interest rates already rose above 3%. Thus, after a significant tightening of the monetary screws, commercial banks ordered a rise in rates.

In the last quarter interest rates rose by as much as 1%, while this average unprecedented change in the average mortgage represents a jump in monthly payment of more than 1000 CZK.

Mortgage interest rates November 2021

At the next meeting of the CNB’s Bank Board, held on Thursday, November 4, 2021, the reference 2W reference rate is expected to increase again by 0.5 percentage points. However, the game also includes a repetition of the last historically most radical jump of 0.75 points. Some economists are already talking about reaching the 4% level for mortgages provided in 2022. Mortgage rates in 2022 should start to provide in the range of 3.8 – 4.1%

End of refinancing

At the same time, with rising interest rates, interest in refinancing previously granted loans with 7, 5 and 3-year fixations is declining. In November, we are witnessing the end of pure refinancing, as the early provision of a favorable rate before the end of the fixation of a running mortgage ceased to make economic sense. The purpose of refinancing will thus mainly fulfill the function of consolidating more loans.

Standard rates November 2021

source: statistic of CNB and CBA, own analysis, update  1. 11. 2021

Refinancing
For refinancing loans, for which the pricing policy consists of a lower margin, a rate of 2,44% p.a. can be obtained for the last time. – during November, however, this minimum limit will also increase at least to 3,29% p.a.

Average mortgage October 2021: CZK 3.283.000, corresponds to an payment of CZK 13.455, at a rate of 2,78% p.a. and maturity of 30 years

Mortgage index 

Composition of the index: the index consists of the arithmetic average of mortgage loan rates provided with 3, 5 and 7 year fixation, the share of loans agreed without additional banking products (life insurance, insurance solvency, credit card, investment) represents 80-85%, the share of preferential loans for refinancing reached 30%, the index does not include products of building societies. The level of the index does not show the current situation on the mortgage market, but the situation approximately 2 months ago.

Mortgage interest rates May 2021

Will we see a cooling of the mortgage rally? Before we look at mortgage interest rates in May 2021, let’s summarize the key events of the past few days.

April events in the mortgage market 

During the April the mortgage rally broke out in full force, which began during March, when banks provided 14.400 mortgages in a record volume of CZK 44.7 billion. During April, despite rising interest rates, banks were literally flooded with new requests and real estate prices continued to rise. The epidemic began to weaken to which the government responded by presenting a plan to ease epidemic measures. People’s expectations of returning to normal full life have a positive effect on the optimistic behavior. People are trying to use the opportunity when the cheap mortgages are still available.

Mortgage interest rates in May 2021

In May, we expect a further gradual rise in interest rates at most banks. According to the Czech Banking Association, up to 13% of people are planning a new mortgage in the near future. Relieved of the uncertainty of the epidemic, people are now more aware of the deteriorating housing availability. According to the survey, most people expect further interest rates and tighter mortgages, as a result of the CNB’s intervention strengthened by new powers.

In addition, there is still a significant group of retail investors in the real estate market, who, strengthened by the abolition of super-gross wages and “accumulated coronavirus savings”, are looking for additional real estate for rent. More than 25% of the population of the Czech Republic considers investment in residential real estate to be attractive, while approximately half of the population considers the purchase of real estate to be a safe and stable investment. We have also long observed a growing interest in “cottages”, where people flee from large cities to the countryside and invest in the acquisition, reconstruction and expansion of their recreational facilities.

May can be characterized as a month of end of individual discounts, when lending at standard published rates even by large banks, which usually report higher rates, but in the past often offered an additional individual discount.

Table of minimal rates May 2021:

source: CNB statistics, own analysis, updated on 1 May 2021

In addition, Hypoteční banka, mBank and Sberbank announce in advance a further increase in interest rates from 3 May 2021 in the amount of +0.2 points.

Refinancing
Most banks usually offer interest rates for refinancing previously granted loans with lower rates of 0.1 – 0.2 o against new mortgages. The possibility of verifying the client’s repayment history in bank registers, so in the case of trouble-free repayment, allows banks to reduce the risk premium. Currently, it is possible to obtain a rate of as little as 1.59% p.a. – during May, however, we expect this minimum limit to increase as well.

“Mortgage refinancing is playing an increasingly important role, refinancing reached a new record in April, the monthly volume of refinanced loans was 5 times higher”

Average mortgage May 2021: CZK 3,009,800, corresponds to an payment of CZK 11,185, at a rate of 2.04% p.a. and maturities of 30 years

Mortgage index April 2021

Composition of the index: the index consists of the arithmetic average of mortgage loan rates provided with 3, 5 and 7 year fixation, the share of loans agreed without additional banking products (life insurance, insurance solvency, credit card, investment) is 80-85%, the share of preferential loans for refinancing reached 35%, the index does not include products of building societies.

(source: statistics of the CNB, CSA and commercial banks)

Czech mortgage rules

Basic 3 rules of czech bank for non-residents to be accepted.

If you want apply for mortgage loan in the Czech Republic you have to fulfill at least one of the following conditions:

• Provable income in Czech (stable salary or own business)
• or be married with czech partner having income in Czech
• or has czech partner (childern, parents) with the income in Czech