The review covers the largest Czech banks which granted numerous mortgage loans to foreigners at the end of 2011.

 

Hypotecni banka

Terms and conditions for obtaining mortgage loans:

• in case if a declarant is the citizen of "a risk country", his/her profits must be documentarily confirmed in the Czech republic; 

• the maximum loan amount is 70% of the property cost; 

• the minimal amount of declarant’s own funds is 30% of the property cost; 

• the maximum period of calling in the loan is 20 years; 

• the interest rates should be fixed for at least 3 years;

• notarized assumption of the bank loan is required; 

• residence on territory of the Czech republic for at least 3 years is required (short-term, long-term or permanent visa); 

• the general mortgage loan amount should not exceed 10 million of Czech crowns.

 

Profits from employment in the Czech republic:

• the profits, confirmed by an employer who is not a legal entity in the "countries of risk";

• the profits confirmed by an employer who has at least 2 years of entrepreneurial activity and at least 15 employees;

• the period of declarant’s employment with one employer for at least 1 year; 

• the profits from current employment, confirmed by an extract from checking account of the declarant in the Czech bank, for the period of at least 1 year.

If declarant’s profits are related to entrepreneurial activity, he/she should have profits tax declaration with tax organ marking and annual reports for 2 last fiscal periods.

 

UniCredit Bank

Foreigners with constant place of residence in the Czech republic who possess personal ID and steady incomes in the Czech republic fall under the category of "standard clients" equal to all citizens of the Czech republic.

 

Other foreigners should meet the following terms:

• the maximum amount of mortgage loan is 80% of the property cost; 

• the maximum amount of payments will be as high as 70% of the declarant’s profits; 

• an extract from checking account in the Czech bank for the period of last 6 months;

• documents confirming his/her employment profits for the period of last 6 months or entrepreneurial profits gained in the Czech Republic, confirmed by profits tax declaration for 2 last fiscal periods; 

• documents confirming property insurance of the pawned real estate.

 

Komercni banka

Terms and conditions for obtaining mortgage loans:

• the citizens of the European union (including Slovakia) must have a visa permitting them to stay on the territory of the Czech republic; 

• foreign citizens should have a constant place of residence on the territory of the Czech republic;

• in case if declarants are a married couple and one spouse does not have a visa, the second one should be either a the citizen of the Czech republic or have a constant place of residence;

• the following profits of entrepreneurship in the Czech republic are accepted:

а) profits from employment - extracts from checking account from any bank of the Czech republic for the last 6months are required; 

б) profits from activity of legal entity - extracts from account in KB (Komercni banka) for the last 6months are required;

• the maximum size of mortgage loan is 85% of property cost; 

• the personal funds are at least 10 % of property cost; 

• the real estate is provided for accommodation only; 

• payments of the mortgage loan can be made after the registration of the mortgage right in the Cadastre of the real estate;

• in case if the cost of mortgage of the real estate makes more than 70% of the sum, a notarial record is required.

 

Volksbank

Terms and conditions for obtaining mortgage loans:

• mortgage loans are granted to citizens of ЕU and Slovakia, as well as the Czech republic citizens; 

• the citizens of the USA must provide: visa allowing they to stay on the territory of the Czech republic; permission for long-term residence in the country; constant place of residence; foreign citizens from other countries must provide a document about their constant place of residence on the territory of the Czech Republic; the maximal term of calling in the loan is 20 years.

A foreigner without constant place of residence should have a guarantor possessing the Czech citizenship or constant place of residence.

A foreigner gaining profits from other countries must sign a document called ‘notarsky zapis se svolenim k vykonatelnosti’.

 

mBank

Terms and conditions for obtaining mortgage loans: this bank grants mortgage loans to citizens of European Union and Slovakia only, who have ID in the Czech republic.

If a foreigner wishes to receive this mortgage loan, he/she should have a permission to reside in the Czech republic all the time needed for calling in the loan. 

Only up to 70% of the loan amount is accepted from the profits received through employment abroad.

 

LBBW Bank

Terms and conditions for obtaining mortgage loans:

• citizens of ЕU (Iceland, Norway, Switzerland, Liechtenstein), having constant permission of residence or long-term visa in the  Czech republic who are residing in the country and gaining profits in the  Czech republic.  

• foreign citizens having constant permission of residence or long-term visa in the  Czech republic who are residing in the country and gaining profits in the  Czech republic.  

• if declarants are married couples, one spouse cannot have constant permission of residence, however second one must be a citizen of  Czech republic; 

• profits from employment abroad are accepted from citizens of the  Czech republic, Slovakia and ЕU citizens (Iceland, Norway, Switzerland, Liechtenstein) with payments of at least 50 000 Czech crowns.

 

Ceska sporitelna

Terms and conditions for obtaining mortgage loans:

• citizens of ЕU (Iceland, Norway, Switzerland, Liechtenstein etc.) having constant permission of residence or long-term visa in the Czech republic; with profits from entrepreneurship in the Czech republic; 

• foreign citizens of other countries constant permission of residence or long-term visa in the Czech republic; with profits from entrepreneurship in the Czech republic; 

 

Raiffeisenbank

Terms and conditions for obtaining mortgage loans:

• a foreigner officially married to a citizen of the Czech republic who has been residing on the territory of the country for at least 2 years (documents to prove this fact are required – residence permission, rent agreement, extracts from bank account etc.). At least one spouse should have a history of gaining profits in the Czech republic; if those are profits from abroad, they should be confirmed by extracts from accounts in Czech banks

• the personal funds must make up at least 15% of the property cost;

• in case if a foreign declarant resides in the Czech republic for less than 5 years, and he/she is a citizen of the country having Credit Register, he/she should provide an extract from Credit register of the country he/she originates from.

Countries with Credit Register are all countries of Western Europe, the USA, Canada, Japan and all countries having representative offices of Raiffeisenbank in them.

 

Wustenrot hypotecni banka

Terms and conditions for obtaining mortgage loans:

• declarants must have a constant permission of residence on the territory of the Czech republic (including citizens of ЕU and Slovakia);

• in case if one of the spouse in a married couple of declarants is a foreign citizen without constant permission of residence on the territory of Czech republic, he/she needs a co-declarant possessing either constant permission of residence or a long-term residence permission;

• if a declarant is a divorced foreign citizen, he/she should have a residence permission of at least 3 years of duration from the day he/she applies for a mortgage loan;

• maximal mortgage loan is 70% of the property cost; 

• the personal funds must make up at least 30% of the investment plan.