Thursday, 6 November 2025
Mortgage rates in the Czech Republic remained unchanged at the start of November, continuing to hover just below the five-percent mark. According to the latest Swiss Life Hypoindex, the average offered rate for home loans stayed at 4.91 percent, the lowest level recorded since the spring of 2022.
Market observers note that the current stability reflects both cautious pricing by banks and uncertainty surrounding the broader economic outlook. Three-year fixed-rate mortgages remain the most attractive option, averaging slightly above 4.5 percent, while five-year fixes stand just under 4.8 percent. Longer ten-year loans and one-year fixes continue to be priced closer to 5.4 percent.
Despite a modest recovery in new lending compared with last year, borrowing volumes remain far below the highs seen during the pandemic era, when cheap credit fuelled record demand. High property prices and households’ reluctance to take on long-term debt are still weighing on overall activity.
Analysts suggest that financial institutions are unlikely to make major rate adjustments in the near term. With both domestic and international markets facing persistent uncertainty, lenders appear to prefer maintaining stable pricing. At the same time, refinancing activity is rising as many borrowers who secured loans at below 2 percent between 2020 and 2021 now face renewals at more than double their original rate. For a standard 30-year mortgage of CZK 3 million, the shift translates into a monthly payment increase from around CZK 10,900 to CZK 15,900.
The current figures underscore the gradual normalisation of the Czech housing finance market, where interest rates have eased from last year’s peaks but remain challenging for many households seeking to buy or refinance a home.
Source: CTK
