Czech mortgages are twice as expensive as in neighboring countries


Photo by Kamilalala /

While mortgage interest rates have been dropping in the Czech Republic, they are still almost twice as high as in neighboring countries, according to local media reports, as cited by 

Photo by Kamilalala /

Record real estate prices in the Czech Republic have already made housing difficult to afford, and relatively high-interest rates make housing more expensive still.

The average interest rate on mortgages in the republic fell to 2.3% in May from 2.39% in April. At the beginning of 2020, it was 2.36%, according to figures from daily Právo.

The financial website gave slightly different figures, with April and May at 2.49%, and January at 2.53%. In contrast, the average mortgage rate in May in Austria was 1.28%, in Germany it was 1.33%, and in Slovakia 1.31%, according to

Právo cited an example in Slovakia where someone buying a house near the capital Bratislava, could get a three-year fixed rate of 0.89% or a five-year fixed rate of 1.19% from Všeobecná úverová banka.

In the Czech Republic, banks provide mortgages for twice as much. They offer a comparable mortgage of CZK 1 million for more 2% with a five-year fixed rate, with the average at 2.19%.

The only neighboring country where mortgage interest rates were higher was Poland, where the May average mortgage interest rate was 3.33%, said.


Karotin Developing Soil Management System in HUF 545 mln R&D... Land

Karotin Developing Soil Management System in HUF 545 mln R&D...

Parliament Negates Mandatory Membership in MOK Parliament

Parliament Negates Mandatory Membership in MOK

Graphisoft Introduces Archicad Collaborate Construction

Graphisoft Introduces Archicad Collaborate

Meet the Expat CEO of the Year Nominees Awards

Meet the Expat CEO of the Year Nominees


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.