Hypotéka (mortgage loan) is a long-term bank loan for buying or building a home, secured by the property itself. If the borrower stops paying, the bank has the right to sell the pledged home.
What to pay attention to
- Down payment — the bank usually does not finance the entire cost of the home; you need to pay part of it yourself.
- Income and solvency — the bank checks official income and existing obligations.
- Interest rate and fixation — the interest rate can be fixed for several years, after which it changes.
For foreigners, access to a mortgage depends on the type of residence permit (pobyt) and the bank: conditions vary between banks, so it is worth comparing several offers.
A mortgage is usually taken out for many years, and the home remains pledged as collateral, registered in the land registry (kataster), until it is fully paid off. Processing an application takes some time and requires proof of income.