Tuesday, 18 November 2025
Mortgage activity in the Czech Republic continued to grow in October, with banks and building societies providing loans totalling CZK 38.8 billion, according to the latest data from the Czech Banking Association’s Hypomonitor. The result represents a 3% increase compared with September, reflecting ongoing strong demand despite elevated market interest rates.
New mortgages excluding refinancing amounted to CZK 29.4 billion, a slight month-on-month decline. The average mortgage rate on new loans fell to 4.48%, down from 4.52% in September, continuing the modest downward trend recorded since mid-2024.
“The market remains robust even after the October correction,” said Jaromír Šindel, chief economist of the Czech Banking Association. “This year’s figures are likely to exceed last year’s totals by roughly a quarter. Higher property prices have also contributed to pushing up the total volume of new loans.”
The number of newly granted mortgages fell slightly to around 6,800, though this remains approximately 18% higher than a year earlier. After seasonal adjustment, the association estimates around 6,700 new loans in October, broadly in line with recent months.
Refinancing activity continued to increase. The volume of refinanced or internally adjusted loans reached CZK 9.4 billion, significantly higher than this time last year and well above the averages seen in 2023, when refinancing activity was subdued due to high interest rates. Refinancing accounted for 24.2% of all mortgage volume in October, compared with an average of around 17% over the previous three years.
Although rates have eased since 2024, market interest rates in the Czech Republic remain elevated and continue to limit the scope for a more pronounced decline in mortgage pricing. The October rate is approximately 0.42 percentage points below that of a year earlier. According to Hypomonitor, the reduction translates into a monthly payment that is roughly 1.1% lower relative to the average applicant’s net income.
The average size of a new mortgage declined slightly to CZK 4.34 million in October. Despite the monthly drop, this remains about 15% higher than a year ago, reflecting both rising property prices and increased borrowing capacity. The combination of larger loan sizes and slightly lower rates has resulted in an average monthly mortgage payment around CZK 2,300 higher than the 2024 average.
Source: CTK
