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Mortgage Loan

Well-advised investment into housing.

The 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 Mortgage loan:

  • a specific purpose loan for investment into real estate
  • purchase of real estate into your ownership (as well as a co-ownership share)
  • settlement of co-ownership and inheritance claims towards real estate
  • purchase of a cooperative flat
  • prepayment of rent in order to conclude a lease contract
  • construction of real estate
  • reconstruction, modernisation and repair to real estate
  • consolidation (settlement) of formerly provided loans or credit used for investment into real estate
  • reimbursement (repayment) of an investment into real estate not older than 1 year already made by the client
  • 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 be as much as 50% of the volume of the mortgage loan
  • the minimum level of the loan is CZK 200,000 and the maximum level is limited by:
    • 85% or 100% of the price of the mortgaged real estate, which is determined by the bank
    • the volume of investment into the real estate (budget costs, purchase price etc.)
    • the client's ability to make repayments
you can draw on the 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 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)
  • as a deposit (without submission of specific accounting documents – this relates to construction and reconstruction of the real estate) to the client's current account
    • as a deposit, the loan can be drawn on up to the 100% of the current price of the mortgaged real estate, up to max. CZK 5 mil.
Repayment of the Mortgage loan:
  • the Mortgage loan is repaid monthly  in the form of annuity amounts (always as of the 10th or 15th day in the month), not until complete drawing on the loan
  • maturity is set at: 5 to 30 years
  • a fixed interest rate is used for Mortgage loans over the period of validity of the interest conditions (1 to 10 years and 15 years from signature of the loan contract)
  • this type of loan must be secured using right of lien to real estate, which must be insured and the premium endorsed in favour of KB, the real estate must be located within the territory of CZ
  • a condition for gaining the loan is a current account for natural persons – individuals in CZK held with KB for the whole duration of the loan transaction

Advantages of the Mortgage loan:

  • deduction of interest paid from your tax base (maximum of CZK 300,000 per year)
  • state support (interest contribution towards residential construction), which can be used subject to meeting of the conditions of the government decree
  • partial or full early repayment of the loan without any penalties once the validity of the interest rate ends
  • valuation of the real estate for 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 mortgaged real estate
  • possibility of drawing on the loan on the basis of proposal for insertion of right of lien
  • possibility of decreasing the interest rate if life insurance is arranged with Komerční pojišťovna, a.s.
  • more than 90 specialised points of sale

The Mortgage loan allows you to:

  • invest into real estate
  • resolve the question 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, subject to advantageous pricing conditions such as processing of the loan, valuation of real estate and drawing on the loan on proposal for insertion of right of lien – FREE OF CHARGE
  • you can also use the Mortgage loan for secondary costs up to the level of 50% of the level of the loan
Requirements for the Mortgage loan:
  • identification documents (personal ID card, passport)
  • documents proving your income – the Confirmation of income from dependant activity or tax return
  • a Mortgage loan application
  • other documents according to 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.)

How to get a Mortgage loan?

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

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