Pre-mortgage loans

• Short-term loan that will allow you to finance housing in situations when you still do not have any property (most commonly in case of cooperative housing, privatisation, and development or self-build projects)
• With a pre-mortgage loan you can build or refurbish your home on your own (self-build) or finance advance payment invoices

• Maximum amount determined based on:
  • The amount of the subsequent mortgage loan
  • The value of mortgaged properties
  • The amount invested in the property
  • Your ability to repay the loan

• Loan drawdown for specific purposes subject to producing the documents proving the purpose, with the money credited to
  • an account specified in the purchase contract (in case of acquisition)
  • accounts of contractors (in case of construction/refurbishment )
  • your current account (in case of refund)

• Loan repayment:
  • Monthly (on the 10th or 15th day of each month)
  • One-off repayment of the principal from the subsequent mortgage loan

• Minimum loan amount starting at CZK 100,000
• Fixed interest rate for the entire loan term
• Loan available without security – up to CZK 3 million
• Receive up to 90% of mortgaged real estate value
• Real estate valuation arranged by KB, including the certificate of title from the Land Register 
• You can finance the following:
  • Purchase of real estate as your own property (and also as co-ownership)
  • Real estate refurbishment, remodelling and repairs as a self-build project, and to pay advance payment invoices
  • Settlement of co-ownership and inheritance claims to real estate
  • Purchase of a cooperative flat
  • Start real estate construction through contractors
  • Start real estate construction on land owned by a municipality
  • Start “quick” construction of prefabricated houses
  • Consolidate previously granted loans used for real estate investments
  • Purchase real estate even in case the seller is not willing to transfer the title to you before the purchase price transfer

This loan is intended for Czech citizens, foreign nationals with a permanent residence permit, and citizens of EU member states with a residence permit in the Czech Republic. It may be drawn by up to 4 people and no more than 2 households.

Pre-portgage loan requirements:

• A CZK current account for individuals maintained throughout the loan term
• Valid identity documents – your ID card, passport
• Proof of income – the Confirmation of Income from Employment form, or a tax return, as appropriate
• Mortgage loan application
• Other documents based on loan purpose, e.g. the purchase contract, building permit, design documents, etc.
• Documents for the financed property, e.g. the title deed

For more information about the whole mortgage loan process see our Guide to Housing.

The pre-mortgage loan repayment period is between 1 and 24 months.

Loan amount: CZK 1,300,000; maturity: 14 months; fixed interest rate: 2.99% p.a.; APRC: 3.25%; total repayable sum: CZK 1,345,109.21; First interest payment: CZK 1,511.61; 2nd to 12th interest payments: CZK 3,239.17, 13th payment CZK 1,301,727.56. One-time fee for: loan processing CZK 2,000; real estate valuation CZK 1,000; petition for entry in the Land Register: CZK 0, petition for striking off the Land Register: CZK 0. Monthly fees for: loan administration: CZK 0; MůjÚčet current account: CZK 0; electronic statements: CZK 0. The example is calculated using the drawdown date of 1 December 2016, with loan maturity on 1 January 2018.

Documents to download:

Income confirmation (form) (ZIP, 19,3 kB)

Application for granting a mortgage loan (form) (Czech version only, PDF, 92 kB)

Mortgage Insurance terms and conditions (Czech version only, PDF, 202 kB)

Links:

Developer projects

A Guide to Housing (Czech version only)