Following recommendations from the Czech National Bank (ČNB), commercial banks introduced strict limits on investment mortgages starting in April 2026. The new rules apply to those buying homes to rent out later or buying their third and subsequent property.
Who Will Have to Pay More
The main change affects the amount of personal funds a borrower must invest in the deal. While the standard loan-to-value (LTV) threshold for a regular mortgage is 20%, investors now need to have at least 30% of the property's value. In the Czech real estate market, this means a buyer will need to find hundreds of thousands of Czech crowns from personal savings.
New Income Limits
Besides increasing the down payment, banks have also tightened debt-to-income (DTI) requirements:
For investors: the total debt cannot exceed 7 times the applicant's annual income.
For regular borrowers: the limit remains more flexible at 8 times the annual income.
This approach aims to reduce risks in the banking sector in case of a sharp drop in housing prices or a decrease in rental demand.
How Banks Will Identify Investors
It will be almost impossible to hide the fact that you own other property. Banks have started checking data from the real estate cadastre in detail. They also ask for information about property ownership abroad and shares in housing cooperatives. An exception might be made only if the client proves to the bank that their existing apartment is for sale.
Major players like Česká spořitelna (where investment loans make up about 9% of its portfolio) and UniCredit Bank began implementing the new limits in February-March. Representatives from the banking sector, including the ČSOB group, predict a moderate decrease in demand for investment loans.
Even though investing in housing remains a popular way to preserve capital in the Czech Republic, the new barriers will make this option available only to the most financially stable investors, forcing others to plan their investments more carefully.
