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ADVICE #18

How to receive mortgage in Czech Republic?

In the Czech Republic foreigners with permanent residence, and without it can get mortgage loan on any individual and the firm. The less people linked with the Czech Republic, the higher will be the mortgage rate and the required down payment for the property. In the absence of the borrower's income in the Czech Republic and the right to long-term or permanent residence, the probability to get a loan extremely small. The Bank in this case can provide a loan of up to 50-60% of the housing cost (it is often below market value) and at a rate of about 1-2 percentage points higher than normal. Foreign customer's income are accounted for with a reduction factor of up to 50%. If the borrower lives in the Czech Republic and has a stable income enough that the loan amount can be up to 80-90% of the market value of housing in the usual current rate. The vast majority of loans issued in CZK, but you can individually negotiate with the Bank about a loan in another hard currency. To obtain mortgage in the Czech Republic it is necessary to provide the Bank with the documents, including the assessment of purchased property by a licensed appraiser, proof of income (Bank statements, salary slips, etc.), credit history of the borrower, the certificate on absence of arrears of taxes and contributions (if the loan is taken for the company), passport, certificate of registration of firm etc. You can (and should) be traded at a rate and amount with banks, the first sentence of the Bank has always inflated rate. You need to think of the question of fixing rates for a certain period (usually five years). On the one hand, it gives a clear understanding of the amounts of payments, but limits the ability of fast repayment of the loan and the loan is refinanced at a lower rate. In the Czech Republic business mortgage intermediaries (brokers) is well-developed to help you correctly fill out and collect documents for a loan. Mediation is free for the borrower. A broker can act as a firm (including real estate), and the physical person. Some of the mediators speak Russian or even specialize in Russian-speaking clients.

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