The Czech Republic may not be an economic powerhouse, but buying real estate here will still cost you a pretty penny. No matter how small the place is, expect it to cost tens or hundreds of thousands of bucks. Possibly even millions too! And you probably don't have that much money right now, do you? Not to worry! At the very least, there's still the option of getting a mortgage here. When you need some financial assistance to purchase a property in the Czech Republic
, this loan is your best bet! Here's what you need to know about getting it.
Do You Need Residency to Apply for a Mortgage?
The answer is yes, you do! In fact, if you're a non-EU citizen, the only way you'll be allowed to purchase real estate in the Czech Republic is if you move here! Even more so if you're applying for a mortgage to help pay for it. And in most cases, many, if not all of the financial institutions in the Czech Republic will require you to hold some form of residency. For EU citizens, a temporary or long-term residency is enough. But for those coming from outside of the EU, most Czech banks and other mortgage lenders will require permanent residency.
Your Country of Origin May Matter
At times, your country of origin may matter when you apply for a mortgage here. Just because you're a resident of the Czech Republic, it doesn't mean you're a citizen. And many financial institutions have categorized certain countries into low or high-risk nations. In a nutshell, low-risk countries include those in the Schengen Area
and the European Economic Area (EEA). Those in the medium-risk countries are those from outside of Europe, namely the US, Canada, Russia, Australia, China, and the like. And the high-risk countries come from other continents like Africa, Asia, and the Middle East.
Other Conditions for Getting a Mortgage
Beyond your residency status and country of origin, there are other conditions you need to meet to get approved for a mortgage in the Czech Republic. One of the more important ones is your age. You must be at least 18 years old if you want to take out a mortgage loan here. And if you want a better chance at having your application approved, you have to be below 67 years old. Most financial institutions in the Czech Republic see the ages between 18 and 67 as the most eligible. Also, your financial situation comes into play too. You need to have a stable job or a consistent stream of income if you want to get a mortgage here.
The Essential Documents To Submit
As with any other process, you will need to show a few required documents when you apply for a mortgage in the Czech Republic. Apart from documents that prove that you meet the already-mentioned conditions, you also have to provide info on the property. The results of the property valuation are one of them since it will help the financial institutions know just how much the place you're buying truly costs. Banks will also asses your credit score to ascertain if you are eligible for a loan. And in this regard, you'd do well to have a local bank account
in the Czech Republic!
Hiring a Mortgage Broker
If everything is too complicated for you, your best bet is to hire a local mortgage broker. Since this is their field of expertise, they can help you throughout the entire process. From assisting in the application to helping you figure out the terms of the loan, their help goes way beyond giving advice. And they're especially helpful if you're not that fluent in the language. More often than not, you can let your mortgage broker serve as your representative in various parts of the process. They'll be your eyes, ears, and mouth throughout the whole thing!
Since property in the Czech Republic can cost a lot, your best bet is to get a mortgage here. Know more about the basics of applying for one and how you might go about getting approved!