Czech mortgage rates to rise in 2026 – here's what to do now

Homeowners in Czechia will likely pay more for mortgages in 2026 as banks prepare to raise rates and after the Czech National Bank (CNB) introduced stricter rules for investment loans on Nov. 28. The changes, which are likely to push the cost of homeownership even higher next year, are driven by higher costs on financial markets.

Tens of thousands of households that locked in ultra-low rates below 2 percent in 2020-21 will face much more expensive offers next year, Czech business news outlet Hospodářské noviny (HN) writes. From April 2026, property investors will also need to deposit more money and meet stricter income rules to get loans. Without getting a new mortgage soon, or refixing rates in the coming months, you’ll pay more for your home next year.

Experts say that general mortgage rates, which according to the Swiss Life Hypoindex are averaging at around 4.9 percent today, will increase “by several tenths of a percentage point” in 2026.

The main reason mortgage rates are expected to rise is that banks’ borrowing costs, which are the main driver of loan rates, have hit a two-year high.

There is some solace for homeowners—current or prospective. “Given the high competition in the market, we expect any increase in rates to be gradual," Ondřej Šuchman, mortgage manager at Komerční banka, tells HN. 

David Eim, executive at mortgage broker Gepard Finance, tells HN that mortgage rates should rise by around 0.4 percentage points next year.

Beginning in April, the CNB will also impose tighter conditions for anyone buying a third or additional property, or purchasing a home strictly for rental purposes. Banks will be allowed to lend only up to 70 percent of the property’s value, and applicants’ total debts cannot exceed seven times their net annual income. 

The central bank says the move is meant to prevent risks from building up in a segment that has grown quickly, as well as to help cool the country’s currently heated (and ever-costlier) real estate market. 

However, the effects of this move will be limited. "I do not think that this step will have any significant impact on the growth of property prices,” mortgage advisor at brokerage company Hypodům Radek Slavík tells HN. “The main problem remains insufficient supply and the low pace of construction of new apartments,” he adds.

Current homeowners or those looking to buy a home soon should act sooner rather than later, experts say. This is especially true for homeowners whose fixed-rate terms expire in 2026.

Adam Mašek of HN advises people with mortgages to negotiate with banks well before the end of their fixed-rate periods: “The standard is that banks send their initial offers no later than three months before [the expiry]...however, some allow the situation to be resolved much earlier, even more than half a year in advance.”

Mašek also explains how banks are often willing to offer a discount to clients who show active interest in securing lower rates. The strongest leverage, he says, usually comes from having a better offer from a competing bank.

Mortgage advisors tell HN that, right now, three-year fixed-term rates are the most attractive due to their flexibility and security. “Since rates are not expected to fall, shorter fixations do not make sense,” says Slavík. HN writes that the best offers on the market for three-year rates currently range between 4.39 and 4.59 percent.