Thursday, 30 October 2025
The average mortgage rate in the Czech Republic fell to 4.99 percent at the start of September, dropping below the five-percent threshold for the first time in two months. The figure, published by the Swiss Life Hypoindex, reflects the average offer rates on mortgages covering up to 80 percent of a property’s value. It is 0.06 percentage points lower than in August.
Analysts say the decline was driven by special offers introduced by some banks. “The question is whether other institutions will follow during the month, which could push the index even lower. So far, adjustments have mainly been made by banks that previously offered above-market rates. The lowest widely available rate remains above four percent,” noted Jiří Sýkora, analyst at Swiss Life Select.
Mortgage rates now vary significantly depending on a client’s risk profile, available savings, and loan purpose. At the same bank, one client may secure a rate near 4.2 percent while another may pay over five percent. Currently, the lowest rates are offered on three-year fixed mortgages with an LTV of up to 80 percent, averaging 4.51 percent. Annual fixations are at 4.94 percent, while ten-year fixations remain the most expensive.
Up to 100,000 households will face mortgage refixing this year, creating opportunities to renegotiate or refinance. “Clients can often secure better terms with a new bank or through their lender’s retention department, but repayments are still CZK 3,000–4,000 higher per month due to elevated rates,” said Jana Vaisová, mortgage specialist at FinGO.
A rapid decline in mortgage costs is not expected. “Discounts are more likely to come from bank promotions and competition rather than from broader market shifts. Inflation, geopolitical risks, and U.S. policy have pushed interest rate swaps slightly higher, though not enough to increase mortgage rates further,” explained Tom Kadeřábek, head of product at Swiss Life Select. Vaisová added that autumn campaigns will likely focus on refinancing offers and “green mortgages” for energy-efficient housing.
The real estate market is responding to the stabilisation of rates. According to Tomáš Jelínek, director of Century 21, demand for apartments in larger cities, especially two-room flats, remains strong. By contrast, interest in large single-family homes has weakened, reflecting growing demand for energy-efficient housing.
Based on the Hypoindex, the average monthly instalment for a CZK 3.5 million mortgage with a 25-year term and an LTV of 80 percent is CZK 20,450 at the current 4.99 percent rate. That is CZK 121 less than in August and CZK 281 less than at the beginning of the year.
Source: CTK
