Monthly mortgage payment agreed up to 80 percent of the property price for 3.5 million crowns with a maturity of 25 years, at an average offer rate of 20,314 CZK.
According to Swiss Life Select analyst Jiří Sýkora, a quick return to cheaper mortgages is not yet on the agenda. While one-year and three-year fixations make interest rates slightly cheaper, five-year and ten-year ones make them more expensive. Each tenth of a percentage point can mean thousands of extra crowns with a long maturity.
According to Sýkora, in an environment of stagnant rates, the right choice of both the fixation and the bank is key. “Further development will depend primarily on banks’ willingness to compete on price and on the economic environment,” he stated. He added that some banks offer discounts, especially for shorter fixations.
Even the stability of the Czech National Bank’s rates is not contributing to the discounting of mortgages. Its basic interest rate has been at 3.50 percent since last May. As OVB Allfinanz analyst Michael Opočenský pointed out, at the end of last year experts even predicted a rise in mortgage rates, but now they are stagnating.
Sirius Finance analyst Lucie Drásalová believes that if the economy accelerates and inflation remains low, the CNB could proceed with a slight rate cut this year. “However, this may not mean a reduction in bank rates. Demand for mortgages is high and banks have no reason to correct rates downward yet,” she pointed out.
Also according to Opočenský, mortgages could become slightly cheaper in the middle of the year. The room for a decrease will not be large, but approaching four percent could be realistic, he thinks.
date:2026-02-09 00:00:00