Interest Rates and Your Mortgage

Considering the interest rate of mortgages in the Czech Republic, we still have advantageous times to take a mortgage. Since 2009, the average rates were constantly getting lower. This decrease stopped in December 2016 being replaced by considerable rise which reached its peak in January 2019. From this month on, we can observe gradual decrease again.

The average interest rate in the chart below includes all rates regardless of the fixation period, i.e. also variable rates and mortgages with various loan-to-value ratio.

Usually, you can get the lowest rate for 3–5 years fixation period. The shorter fixation period offers you more flexibility while the longer one guarantees you the same monthly payment.

There are several factors which have influence on mortgage interest rates – especially GDP or inflation. The CNB prediction regarding inflation is following: