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Bridging Mortgage Loan

The Bridging mortgage loan for your own home.

The Bridging mortgage loan is intended for:

  • citizens of the Czech Republic
  • foreigners with permanent residency in the Czech Republic and non-residents
  • citizens of EU member countries with a residency permit – temporary or permanent (in the case of married couples, at least one must be a Czech citizen or have a residency permit or permanent residency permit)
  • up to four people may be applicants, representing a maximum of two households
  • married couples are always regarded as co-applicants for the loan (unless they have restricted joint assets)

Characteristics of the Bridging mortgage loan:

  • a single-purpose loan for investment into real estate
  • repayment is secured using capital life insurance from Komerční pojišťovna, a.s. or building savings concluded with the Modrá pyramida building society
  • in combination with capital life insurance, the loan can be used for:
    • purchase of real estate into your ownership (or a co-ownership share)
    • settlement of co-ownership or inheritance claims towards real estate
    • construction of real estate
    • reconstruction, modernisation and repair to real estate
    • consolidation of formerly provided loans or credit used for investment into real estate
    • purchase of a cooperative share
    • reimbursement – repayment of an investment into real estate not older than 1 year already made by the client
    • prepayment of rent in order to conclude a lease contract
  • in combination with building savings from the Modrá pyramida building society, the loan can be used for:
    • purchase of real estate into your ownership (or a co-ownership share)
    • settlement of co-ownership or inheritance claims towards real estate
    • construction of real estate
    • reconstruction, modernisation and repair to real estate
    • purchase of a cooperative share
  • exclusively for investment into real estate intended for housing
  • purposes can be mutually combined, e.g. purchase and completion of construction, purchase and reconstruction etc.
  • the mortgage loan can also be used to pay for secondary costs relating to investment into real estate, for example:
    • a fitted kitchen
    • fitted wardrobes
    • project documentation
    • geometric measuring of the building
    • building supervision
    • commission for an estate agency
    • the total level of these costs may not exceed 50% of the volume of the mortgage loan
  • the minimum level of the loan is CZK 100,000
  • the maximum level is limited by:
    • 85% or 100% of the price of the mortgaged real estate, which is determined by the bank (combination with capital life insurance)
    • 85% of this price (combination with building savings)
    • the volume of investment into the real estate
    • the level of the target amount in building savings
    • 100% of the sum insured as arranged in capital life insurance
    • the client's ability to make repayments
  • security using right of lien to insured real estate within the Czech Republic, the premium must be endorsed in favour of KB
  • obligatory endorsement of the building savings account of all participants in building savings
  • in the case of combination with capital life insurance, right of lien to the debt must be established

You can draw on the Bridging mortgage loan:

  • in a one-off manner or gradually over the course of 2 years from the date of signature of the contract
  • drawing must be commenced no later than 9 months from signature of the loan contract

method of drawing on the Bridging mortgage loan:

  • for a specific purpose (with submission of specific documents proving the purpose of drawing):
    • to the account stipulated in the purchase contract (in the case of purchase)
    • to suppliers' accounts (in the case of construction/reconstruction)
    • to a current account (in the case of reimbursement or drawing on the non-specific part of the loan)
  • as a deposit (without submission of specific accounting documents, in the case of reconstruction)
    • to the client's current account
    • to the maximum level of 85% of the current price of the mortgaged real estate, up to max. CZK 2 mil.
    • on a one-off basis, the loan can be drawn on up to a maximum level of 70% of the current price of the mortgaged real estate
    • the remaining part can be drawn on after submission of proof of actual performance of reconstruction work drawn up by a bank assessor

repayment of the Bridging mortgage loan

  • you only repay interest
  • the principal is repaid in a one-off manner or gradually from building savings or capital life insurance
  • maturity of the loan
    • in combination with capital life insurance: 5 to 30 years
    • In combination with building savings: 1 to 8 years
  • in combination with capital life insurance, a fixed interest rate is used for the period of validity of the interest conditions (fixation)
  • in combination with building savings, the rate is fixed for the whole duration of the transaction

Advantages of the Bridging mortgage loan:

  • possibility of combining funds from building savings or capital life insurance with a mortgage loan
  • deduction of interest paid from your tax base (maximum of CZK 300,000 per year)
  • state support (interest contribution for residential construction)
  • partial or full early repayment of the loan without any penalty charges when the validity of the interest rate ends (in the case of combination with capital life insurance)
  • valuation of the real estate to be used as security is ensured by KB including obtaining the Ownership Deed from the Real Estate Register
  • all-inclusive service at one branch
  • we can lend you up to 100% of the value of the secured real estate
  • possibility of drawing on the loan on the basis of proposal for insertion of right of lien
  • more than 90 specialised points of sale

The Bridging mortgage loan allows you to:

  • invest into real estate up to 100% of the price of the mortgaged real estate (combination with KP capital life insurance)
  • invest into real estate up to 85% of the price of the mortgaged real estate (combination with building savings)
  • resolve the issue of housing, reconstruct or modernise real estate
  • settle co-ownership or inheritance claims towards real estate
  • repay older loans or credit provided for investment into real estate (combination with KP capital life insurance)
Requirements for a Bridging mortgage loan
  • repay older loans or credit provided for investment into real estate
  • identification documents (personal ID card, passport)
  • documentation proving your level of income
    • the Confirmation of income from dependent activity form
    • or a tax return
  • an application for provision of the mortgage loan
  • other documents depending on the purpose of the loan
    • e.g. purchase contract
    • building permit
    • project documentation
    • etc.
  • documents relating to the subject of the loan (e.g. purchase title, etc.)
  • contract/s on building savings with Modrá pyramida or Contract on capital life insurance with Komerční pojišťovna, a.s.

How to get the Bridging mortgage loan?

  • contact your relationship manager
  • call the free KB Info line on 800 521 521

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