The main difference is the possibility of using the money. A classic mortgage can only be used for housing-related purposes, typically to buy a house or apartment, renovate your own home or build a new house, all of which needs to be documented.
The American mortgage money can be used for anything, you do not have to submit any invoices or purchase agreements and the bank does not monitor what you use the money for.
A classic mortgage is intended for housing only and thus offers a lower interest rate than an American mortgage which can be used for anything.
However, the American mortgage usually has a lower interest rate than a usual personal loan that is not secured by real estate.
With an American mortgage, you can get up to 70% of the property price, while with a classic mortgage it is up to 90% of the property price. The size of the American mortgage can be up to CZK 10 million.
The maturity of a classic mortgage can be up to 30 years, while it is up to 20 years for an American mortgage.