Mortgage holders in Czechia should prepare for higher costs in 2026 as banks signal upcoming increases and the Czech National Bank (CNB) tightens lending rules. As a result, both current homeowners and new buyers will likely face more expensive borrowing conditions. Tens of thousands of households that locked in ultra-low rates below 2 percent in 2020–21 are expected to encounter significantly higher refixation offers. Moreover, stricter rules for investment properties will add further pressure next year. Therefore, experts warn that delaying key mortgage decisions could become costly.
Market Pressure Continues Pushing Rates Upward
Today’s average mortgage rate of around 4.9 percent is expected to rise “by several tenths of a percentage point” in 2026. This trend is largely driven by banks’ borrowing costs, which have now reached a two-year high. Consequently, lenders are preparing to adjust their offers. However, the overall competitive landscape should make these increases gradual, according to Komerční banka mortgage manager Ondřej Šuchman. Additionally, David Eim of Gepard Finance predicts an increase of roughly 0.4 percentage points next year. Despite the challenging outlook, borrowers still have time to act before the more substantial rises take effect.
Stricter Lending Rules for Property Investors
Beginning in April 2026, the CNB will introduce tighter conditions for anyone buying a third or additional property or investing strictly for rental income. Under the new rules, banks will lend only up to 70 percent of the property’s value, and total debts may not exceed seven times an applicant’s net annual income. The goal is to prevent risks from accumulating in a rapidly expanding segment and to ease pressure on Czechia’s overheated housing market. Even so, mortgage advisor Radek Slavík argues that these changes will not significantly influence property prices, since the main problem remains the inadequate supply of new housing.
Steps Borrowers Should Take Now
Given the upcoming rate hikes, specialists advise homeowners—especially those with fixations expiring in 2026—to start negotiating with banks well in advance. Typically, banks send offers three months before a fixed period ends; nevertheless, some allow discussions more than six months earlier. Furthermore, borrowers who actively compare deals often receive better rates, particularly when presenting competing offers. According to advisors, three-year fixed terms currently offer the best balance of flexibility and stability, with leading rates between 4.39 and 4.59 percent. Therefore, acting soon may help borrowers avoid higher payments next year.
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