How to compare mortgage offers in Prague: rate, fees and fixation

Three banks, three offers, three different rates on the front page. It looks like an easy contest, until you notice that one rate is fixed for three years, another for five, a third comes with insurance you did not ask for, and none of the monthly payments is quite the same.

This guide shows what to compare and in what order. It is not mortgage advice, so for your case talk to a lender, a broker or an adviser. There are no current rates here; they change too often.

Start with the same loan

To compare, fix the variables. Use the same amount, the same term (how many years) and the same property value, then ask each lender for an offer on those terms. If one offer assumes a longer term, its monthly payment will look lower and its total cost higher.

Then compare these seven things.

Rate, fixation and RPSN

The interest rate is what you pay on the balance. The fixation is how long that rate is guaranteed: a few years is common, and the choice is a bet. A longer fixation buys certainty; a shorter one lets you reprice sooner. Neither suits everyone.

The RPSN is the annual percentage rate of charge. Czech lenders must state it, and it brings the rate and the mandatory costs into one figure so offers can be compared. It does not include everything you might choose to buy alongside, so read what it covers.

To see how a rate and a term turn into repayments, you can model them with the mortgage calculator on Hypoteky.com. It is a calculator, not a recommendation. Our guide to what a 30-year loan costs monthly explains the same arithmetic in words.

Fees and the extras

Look for fees at the start (arrangement, valuation of the property), during the loan (account or servicing charges) and at the end (for early repayment where permitted). Ask whether the offer requires a current account or an insurance product, and what it costs. Property insurance is usually needed; life or payment-protection insurance is often offered, and whether it is required or optional matters. Ask for it in writing.

A hypothetical example: Bank A offers a lower rate but requires a paid package; Bank B has a slightly higher rate and no package. The one with the lower rate may cost more once the package is added. The only way to know is to price both on the same loan, over the same horizon.

Early repayment

You may repay a mortgage at any time. The law distinguishes. Repayment is free at the end of a fixation, in a period without a fixed rate, once a year in the month before the contract anniversary up to 25% of the loan, on the death or long-term illness or disability of a borrower in certain cases and, for loans agreed or refixed since 1 September 2024, on selling the property at least two years after purchase or settling joint marital property after divorce. Otherwise a lender can charge only reasonably incurred costs, for housing loans at most 1% of the amount repaid (as of 2026; check the Czech National Bank and the contract). Some banks ask borrowers to waive rights in exchange for a rate guarantee, so read that clause.

Why it matters: if you may sell, divorce or overpay in future, the rules shape the real cost of each offer. Our guide to selling your flat and the one on buying with a partner cover the cases.

When the fixation ends

Put the date in your diary. As the end of the fixation approaches, lenders send a new offer. That is the time to compare again, including moving to another bank. The guide to refinancing a Czech mortgage on Hypoteky.com describes how that works, and the Czech mortgage market in numbers page gives background on volumes and rates. They are information pages, not advice.

Brokers and independent advice

A broker can ask several banks for you. Ask how the broker is paid, which lenders the broker covers and whether the broker acts for you or the lender. If you are a foreigner, ask first which banks lend to you; see mortgage pre-approval for expats and mortgages for expats. If you are buying with a partner, both of you should read the offer.

If you have a complaint about a lender or an intermediary, the Financial Arbiter handles some out-of-court disputes; check its website for what it covers.

Questions to put to every bank

Send the same list to each lender, and keep the answers in one place.

• What is the rate, and for how long is it fixed?
• What is the RPSN for this exact loan?
• Which fees apply, and when are they due?
• Are any products or accounts required, and what do they cost?
• What is free to repay early, and when?
• What rate applies after the fixation if I do nothing?
• How long is this offer valid, and what could change it?

Lenders must give a standard information sheet, so ask for it rather than a marketing summary. If an answer differs from the sheet, ask the bank to explain the difference in writing. And ask what happens if your circumstances change: a new job, a child, a move abroad. A good lender can tell you plainly.

Frequently asked questions

What is the RPSN?

The annual percentage rate of charge. It combines the interest rate and mandatory costs so offers can be compared.

What does fixation mean?

The period for which the interest rate is fixed. At its end the rate is reset, or you can repay or refinance.

Can I repay early?

Yes. Some repayments are free; others can carry limited costs. Check the rules and your contract.

Should I use a broker?

A broker can compare several lenders. Ask how they are paid and which banks they cover.

This is a general explainer, not legal or tax advice.