Real estate in the Czech Republic through a mortgage can be acquired not only by its citizens but also by foreigners. Thanks to a wide range of banking offers, the procedure for acquiring real estate by foreigners is quite common and popular.

The Procedure

When buying a finished housing you have to:

• Prepare documentation for submission to the bank.
• Make certified translations of documents in Czech.
• Submit documents to the bank.

Then, an assessment of real estate by the bank is carried out.

If the loan is approved, you:

• Pay your share of the value of the property, after which the documentation is signed with the bank.
• Conclude a real estate insurance contract.
• Submit documents to the cadastre to record the burden in favor of the bank.
• Next, the bank pays the rest of the value of the property.
• Submit documents to the cadastre to record ownership.

When buying a property is under construction you have to:

• Prepare documentation for submission to the bank, including certified translations into Czech.
• Submit documents to the bank.

The Bank is evaluating the property.

If the loan is approved, you:

• Pay your share of the value of the property.
• Sign the documentation with the bank.
• After the commissioning of the property, a second assessment is carried out.
• Submit documents to the cadastre to record the burden in favor of the bank.
• The bank pays the remainder of the value of the property.
• Submit documents to the cadastre to record ownership.

Requirements:

• An employment contract (best if the contract is concluded for an indefinite period), but at least for the term of the mortgage.
• Bank statement, which proves you have been receiving a salary for the last three months.
• Confirmation of the employer on the amount of a salary.
• Loan application.
• Real Estate Insurance Contract.
• Copy of your foreign passport.
• Reservation agreement for the selected property.

Mortgage Conditions:

• Maximum loan amount: 60% of the property price, in case of a loan amount of up to €194,500. And 50% of the price of real estate, in case of a loan amount is over €194,500.
• Minimum loan amount: €11,670.
• Maturity: maximum 30 years, up to 75 years of the borrower.
• The maximum possible age of the borrower on the date of receipt of the mortgage: 71 years.
• If the borrower is more than 45 years old, then the mortgage is given for the number of years remaining until the borrower is 75 years old.

The Cost Of A Mortgage:

• €972 – a one-time payment for processing a loan;
• €470-780 for notary services (one-time payment, the exact amount depends on the price of the apartment);
• €80 for the services of a court interpreter when signing a notarial protocol;
• €155-310 for translating documents into Czech;
• €195-230 for apartment insurance (annual payment, the exact amount depends on the price of the apartment and on the total area of the housing);
• €80 fee for recording pledge in the real estate cadastre;

Finished object:

€150 – the appraisal of the apartment. The object under construction’ appraisal costs €170 plus updating after the commissioning of the object €60.

Total sum: A single payment is from €2,000.