How does a bridging loan work? Until recently, building savings (stavební spoření) was a popular and widely used financial product that allowed for safe money appreciation. Its strength lay in an attractive state contribution and return thanks to decent interest rates that matched average savings accounts. This is changing in turbulent times, and we can say that building savings is an ultra-conservative product that in some years does not even keep up with inflation. Furthermore, it is heavily limited by the saved amount.
Unfortunately, developments in the financial market have brought worse conditions for small savers. However, it remains attractive to those interested in obtaining a bridging loan or a regular building savings loan. Rising mortgage loan rates make the bridging loan a competitive product.
If you are interested in comparing loans, you can look on this portal at a comparison of the most advantageous loans or a comparison of the best loans.
What is a bridging loan?
A bridging loan is a specific product from a building society that allows you, as a client, to draw a loan from the building society even when you do not have enough of your own saved funds to be granted a regular building savings loan.
What are the conditions for granting it? First of all, you must enter into a building savings contract. After that, try to save the maximum amount of money and also achieve a certain evaluation number. A condition for granting a bridging loan is also proof of income from employment or business.
How does a bridging loan work?
To get one, you must open a building savings deposit account. Today, some building societies already offer the option of providing a loan without the need for your own saved funds or real estate collateral.
You set the target amount according to the property price or the estimated cost of renovating your home. You do not have to tie yourself completely to how much the house renovation will cost, but what is more important is how much money you will need at this stage of life. You will find many tips in the article House renovation step by step. While repaying a bridging loan, you pay only interest to the building society up to the stage when you qualify for a regular building savings loan.
At the same time, you save in your deposit account, which increases the value of your own savings and brings you closer to obtaining a regular building savings loan. Another advantage is that you can deduct the interest paid from your tax base (základ daně).
The moment you reach the level for a regular building savings loan, the interest rate drops and you no longer pay just interest, but also the principal itself.
💡 Tip: Also pay attention to the article: Housing allowance and conditions for obtaining it in 2021
Which building societies provide a bridging loan?
Currently, a total of 5 building societies operate on our market. They can offer you the following conditions for obtaining a bridging loan:
1. ČSOB building savings (Liška)
From 1 July 2021, this building society offers the possibility of opening a building savings account free of charge with an appreciation of 3.5% per year upon meeting basic conditions. Another new feature is the option to close the deposit account after three years without a fee.
What conditions can you expect when managing a bridging loan? The building society provides you with account statements, contract preparation and certificates of interest paid free of charge, but you will pay a fee of 360 CZK (about 16 USD) per year for account maintenance.
A fixed rate of 4.9% is set for the bridging loan. The moment you reach the regular loan stage, you can count on an interest rate of 3.6%. You can apply for an unsecured loan of up to 1 million CZK (about 46,000 USD) to acquire or repair property, which is certainly interesting.
2. Stavební spořitelna České spořitelny (Buřinka)
Similarly to Liška, between 1 October and 31 December you have the opportunity to enter into a building savings contract with a 2,000 CZK (about 92 USD) bonus and an annual appreciation of 3.6%.
As far as the loan is concerned, Buřinka will offer you a building savings loan with a fixed interest rate of 3.99%, and for a bridging loan you can count on an interest rate starting from 4.35%.
Everything depends, of course, on the specific drawn amount, the planned loan repayment period, and your chosen monthly instalment.
Another advantage that will surely please you is the possibility of making extra payments and paying off the loan faster, which you can now plan for a period of up to thirteen years.
3.Raiffeissen stavební spořitelna
This financial group currently offers free opening of a building savings account up to a target amount of 200,000 CZK (about 9,200 USD) with an annual appreciation of 3.5%.
What interest rate can you expect at Raiffeissen stavební spořitelna? If you meet specific conditions, you can get an interest rate of 2.99% on a standard loan up to 1 million CZK (about 46,000 USD) without a property lien, provided you have own savings amounting to 35 to 40% of the target amount.
The building society is able to provide you with a bridging loan without the need for your own savings up to 1,000,000 CZK (about 46,000 USD) (without requiring real estate collateral, but requiring loan insurance). If you obtain it, count on an interest rate starting from 4.10%.
4. Moneta building savings (stavební spořitelna)
Moneta stavební spořitelna also offers its clients favourable conditions for obtaining a bridging loan. You can get this even without your own savings. Without needing to secure property, you can borrow up to 1 million CZK (about 46,000 USD) with an interest rate starting from 3.89%. You can set the repayment period optimally according to your current life situation, ranging from 6 to 22 years.
For a regular loan, you can already count on an interest rate starting from 2.99%. Another advantage is the option of early repayment without penalties, free processing of the loan, and the option to deduct interest from the tax base (základ daně).
5. Stavení spořitelna Komerční banky (Modrá pyramida)
Modrá pyramida will please you with an offer of an unsecured loan of up to 800,000 CZK (about 37,000 USD) with an interest rate starting from 3.99%. They will process the loan free of charge with the option to spread its instalments over up to 20 years and with tax deductions.
Bridging loan calculator
When borrowing funds, you are always interested in the instalment amount and the current interest rate. The advantage of a bridging loan is the option of additional saving when you are not fully financially fit.
What your monthly instalment, saving period, and final paid amount might look like is shown in the following loan calculation, which compares the offer of two building societies:
| Raiffeisen | |
| Loan amount | 900,000 CZK (about 41,000 USD) |
| Repayment period | 15 years |
| Monthly instalment | 6,621 CZK (about 300 USD) |
| Interest rate from | 4,10% |
| Minimum monthly income | 11,000 CZK (about 500 USD) |
| Moneta | |
| Loan amount | 900,000 CZK (about 41,000 USD) |
| Repayment period | 15 years |
| Monthly instalment | 6,622 CZK (about 300 USD) |
| Interest rate from | 3,89% |
| APRC (roční procentní sazba nákladů, RPSN) | 3,92% |
| Total loan amount | 1,191,960 CZK (about 55,000 USD) |
Clients of these building societies borrow an amount of 900,000 CZK (about 41,000 USD) for a term of 15 years and without real estate collateral. A client qualifies for a regular loan after saving at least 40% of the target amount (360,000 CZK (about 16,000 USD)).
💡 Tip: Also read the article regarding mortgages and consider your other options: What are the conditions for getting a mortgage?
Bridging loan versus mortgage
Mortgage interest rates are gradually approaching the critical 3% threshold, bringing them closer to standard building savings loans. The option to use a loan without requiring real estate collateral or pressure for necessary initial capital also makes it more attractive to clients.
What is the difference between them and what advantages or disadvantages will it offer you? A mortgage is generally seen as a long-term product with a pre-chosen fixed-rate period (fixace). When drawing it, you must secure real estate, which must also be insured.
A mortgage loan is suitable for drawing amounts over 1 million CZK (about 46,000 USD). This usually involves buying a flat or building a family house.
A bridging loan is an excellent helper for renovation. Its undisputed advantage is the option of early repayment and a shorter term. Clients use it when drawing lower amounts (up to 1 million).
Choosing a suitable product depends on your current life situation and financial capabilities. Financial advisers from individual banks are a great help. They analyse your situation and willingly propose the right solution. Do not be afraid to compare offers. The effort spent will save you time and money.
USD amounts are approximate, converted at the Czech National Bank rate of 21.83 CZK per USD on 27 October 2026.
