Choosing the best mortgage often depends on the specific offer you get for your particular figures. So do not expect this article to tell you exactly which bank currently has the best mortgage for you, because many variables play a role in getting a home loan. However, the following summary can help you approach the lenders where you have a chance of getting the best terms currently available.
How to calculate a mortgage
A mortgage calculation works with a few basic figures. These are mainly the amount you want to borrow and how high one monthly payment should be. You also need to take into account the rules and recommendations of the Czech National Bank (ČNB). These limit mortgage loans to 80% to 90% LTV (the ratio of the loan to the value of the mortgaged property), and the monthly loan payment must not exceed 45% (or 50% for people under 36) of your net monthly income. So it is always a good idea to get a preliminary mortgage calculation before you sign a reservation agreement for your specific situation. To build up enough savings for a mortgage, you may also find this article useful: how to learn to save.
Find out how other people with a mortgage at that bank are getting on
Apart from the figures and hard data, the experiences of people you know and how well the bank looks after its customers can also help you choose the right bank for your mortgage application. This criterion will be useful in the future, for example when you apply for refinancing or other changes to your terms. Along with a mortgage, it is also good to know how to set up life insurance.
Mortgage interest rate comparison
The comparison mainly looks at interest rates and, where relevant, fees. However, some fees may also depend on taking out additional services at the bank, so always check in advance what will apply in your case. Different amounts may also be charged for valuing the property for loan approval.
All these loan costs should be summarised in the APRC. This is the annual percentage rate of charge (roční procentní sazba nákladů, RPSN), a figure that lets you compare individual loan offers with each other so it is as clear as possible where you will overpay the most.
Did you know that a difference of 1 percentage point in the interest rate can mean that, on a 3 million CZK (about 140,000 USD) mortgage over 30 years, you pay almost half a million CZK more?
Think about the best fixed-rate period (fixace)
Nobody can tell you right now whether a shorter or a longer one is better. It depends on whether interest rates are currently low or relatively high. In a situation where you can take out a mortgage at a rate of around 2% or even lower, try to agree a longer fixed-rate period. This is because interest rates are likely to rise in the future.
It is trickier, however, in a situation where the interest rate is relatively high but could still go higher. Historical data can help you with this kind of estimate. When the rate is around 4% or higher, it is very likely that rates will fall in the foreseeable future. But nobody can tell you how long that will take, so it is still up to you whether you choose a fixed-rate period of 3, 5, 7 or even more years. The bank may also offer a different interest rate depending on the fixed-rate period you choose.
One way to secure a good current interest rate while you are still choosing a property to buy is a pre-approved mortgage. In this case, the terms apply for a period agreed in advance with the bank, typically three or six months from pre-approval. Another advantage is that all the other formalities are handled faster later on, so you can draw the money more or less immediately after the valuation of the property you finally choose to buy.
Will you also need insurance with your mortgage?
If you are taking out a mortgage, it makes sense to also think about whether you will need insurance. Some banks directly require payment protection insurance. Others offer a favourable interest rate only if you take out an insurance product. In some cases you can also get a lower rate by opening a new account at the bank or using another product. But always try to choose so that the cost of the extra insurance or product is not high.
In general, it is better to have properly set up life insurance. Then you do not need to pay separately for additional insurance, which is too expensive in most cases. A life insurance policy also continues to apply outside the fixed-rate period.
Because the property serves as security for the mortgage, most banks will require property and household contents insurance. Even if the bank does not make it a condition, it is a good idea to take out this insurance. Property insurance is usually set at roughly the purchase price of the property. With household contents insurance, you decide yourself whether you want basic insurance limits or a higher limit because you own more expensive belongings.
Tip: For protection with a mortgage, it may be worth taking out term life insurance.
Arranging a mortgage online
There are certainly many parameters that play a role in choosing the best mortgage. So how can you get the best offer without spending too much time comparing all the options? A great help is a mortgage calculator, which compares offers from, ideally, all bank lenders.
Just enter the key parameters, such as the loan amount, the total purchase price of the property, the repayment period and the fixed-rate period you want, and you will get an overview of offers that match them. Make sure the comparison covers offers with the same terms. In practice, this means leaving out mortgages whose interest rate depends on taking out other products.
Mortgages for entrepreneurs, which bank to go to?
In general, it is easier to get a mortgage for people with a standard permanent job. This is because there is more certainty that a suitable amount will arrive in your account every month. For business owners or self-employed people (osoba samostatně výdělečně činná, OSVČ), getting a mortgage can therefore be more difficult. Some banks are better at working with tax returns that use flat-rate expenses, while in other cases you need to prepare your tax return at least two years in advance so that the result is acceptable to the bank.
Banks where it is worth trying to get a mortgage if you run a business include
- ČSOB (Hypoteční banka): the mortgage assessment works with the amounts coming into your account. If you also have a business account at the bank, it can help you get the loan.
- Raiffeisenbank: can process tax returns with flat-rate expenses too
- Komerční banka: also offers a recalculation for flat-rate expenses in the tax return
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.