Mortgage refixing in the Czech Republic 2026: stay or switch…

This year, fixed-rate periods are ending on mortgages worth hundreds of billions of CZK, and rates are now much higher than when these loans were taken out. Here is how to compare your bank's offer with the rest of the market and how to fit refixing in with your other plans.

Don't accept your current bank's offer automatically. Compare it with at least two or three offers from other banks, because when your fixed-rate period (fixace) ends, you can move your mortgage to another lender without a penalty. On a loan of several million CZK, a difference of a few tenths of a percentage point adds up to tens or even hundreds of thousands of CZK over a single fixed-rate period. Refixing is also a good time to pay off part of the debt early, change the loan term, or adjust the loan to fit a planned sale or purchase.

How many mortgages are being refixed this year and how rates have changed

The Czech National Bank estimates that fixed-rate periods will end in 2026 on mortgages worth around CZK 460 billion, the highest figure of any year covered by its analysis. The average rate on these loans is about 3.3%. Most of them were taken out when rates were much lower than anything on offer today.

The market has moved on. According to the ČBA Hypomonitor, the average rate on new mortgages rose to 5% in August 2026, while refinanced loans averaged 4.97%. The Swiss Life Hypoindex, which tracks advertised rates, stood at 5.51% in September, its sixth consecutive monthly rise. The Czech National Bank raised its base rate to 3.75% in June and held it in September, and analysts do not rule out a further increase. Borrowers who are refixing should therefore expect higher monthly repayments than before.

Your current bank's offer: why you shouldn't simply accept it

Your bank will send you its new rate offer in advance. However, there is no guarantee that this is the best deal it is prepared to give you, or the best deal on the market. According to the Swiss Life Hypoindex, the cheapest offers in September started at 4.67% for a three-year fixed rate on loans of up to 80% of the property's value, well below the average.

An illustrative calculation shows how much the rate matters. On an outstanding balance of CZK 5 million with 20 years left to run, the monthly repayment at 4.6% is roughly CZK 31,900; at 5.2% it is about CZK 33,550. A difference of around CZK 1,650 a month adds up to roughly CZK 100,000 over a five-year fixed-rate period. You can also use a competing offer as leverage with your own bank, which is often able to lower its rate once it sees that you have a genuine alternative.

When comparing offers, look beyond the interest rate. Also take into account loan administration fees, the conditions attached to discounts (payment protection insurance, a current account receiving regular income), the cost of a new property valuation and the time needed to register the mortgage charge. What matters is the total cost of the loan over the fixed-rate period.

Refinancing free of charge when your fixed rate ends: what the law says

Section 117 of Act No. 257/2016 Coll., the Consumer Credit Act (zákon o spotřebitelském úvěru), states that a lender may not claim compensation for early repayment during a period for which no fixed interest rate has been set. This also applies on the day your fixed-rate period ends. You can also repay the loan without a penalty within three months of your bank notifying you of the new rate. Other cases where early repayment is free include repaying up to 25% of the loan in the month before the contract anniversary, selling the mortgaged property at least 24 months after the contract was signed, and situations such as death or disability.

Be aware of the amendment that took effect on 1 September 2024. For mortgages taken out after that date, and for older loans whose new fixed-rate period began after it, the bank may, outside the statutory exceptions, charge up to 0.25% of the amount repaid for each remaining year of the fixed-rate period, capped at 1%, in addition to its administrative costs. So if you choose a new fixed-rate period now, leaving part-way through it will cost more than it used to. Choose the length of your fixed rate with an eye on when you are likely to want to sell the property or change the loan.

How long a fixed rate to choose for 2027 and beyond

According to the September Swiss Life Hypoindex, three-year fixed rates were the best value for loans of up to 80% of the property's value, averaging 5.27%. Five-year fixed rates averaged 5.51% and ten-year fixed rates 5.99%. A shorter fixed rate is cheaper today and lets you benefit if rates fall. The risk, however, is yours: if rates keep rising, you will pay more when you next refix.

A longer fixed rate gives you certainty over your repayments and suits those on a tight budget or who plan to keep the property for the long term. A shorter fixed rate makes sense if you plan to sell, make a large overpayment or move within three years, because the end of a fixed-rate period is the moment when you can do almost anything with your loan without a penalty. No one can reliably predict where rates will be in 2027, so base your decision on your own plans and how much risk you can take on, not on market forecasts.

Overpayment, a shorter term or a larger loan?

If you have spare funds, the refixing date is the cheapest moment to reduce your debt. This makes sense above all when keeping the money somewhere safe would earn less after tax than your mortgage rate. Do, however, keep a reserve covering several months of expenses. A lower outstanding balance can also reduce your loan-to-value ratio and, with it, your interest rate, as loans above 80% of the property's value are more expensive.

The second option is to change the loan term. Extending it keeps your monthly payment the same even at a higher rate, although you will pay more in interest overall. Shortening it, on the other hand, saves you money, provided your budget allows. Increasing the loan, for example to fund a renovation or an investment, can be combined with refinancing. Be prepared, though, for a fresh assessment of your creditworthiness and of the value of the property used as collateral, as well as for the Czech National Bank's (ČNB) rules on mortgage lending.

Refixing as a moment to sell or move

If you are thinking of selling or buying a larger flat, plan around the end of your fixed-rate period. Selling at this point means you can repay the loan without a penalty, however long you have had it. If you expect to sell within the next year or two, consider a short fixed period, or check whether the statutory exemption for a sale more than 24 months after signing the loan agreement applies to you.

When moving to a larger flat, there are several options: repay the old loan from the sale proceeds and take out a new one, transfer the mortgage charge to the new property, or bridge the gap between the purchase and the sale. Each option involves different costs and different demands on timing. It is therefore wise to address financing, the valuation of your flat and your sales strategy at the same time, rather than only after you have signed a new fixed rate.

Checklist: what to have ready three months before your fixed rate ends

The end date of your fixed-rate period, the current outstanding principal and your loan agreement, including the terms and conditions.
Your current bank's offer, or a request for one if it has not yet arrived.
At least two comparable offers from other banks, ideally with the same fixed-rate period and the same discount conditions.
Proof of income, bank statements and an overview of your other liabilities for the creditworthiness assessment.
An up-to-date estimate of the property's market value, as a higher value can lower both your loan-to-value ratio and your interest rate.
A decision on an overpayment, a change to the loan term or an increase in the loan.
Your plans for the property over the next three to five years, i.e. selling, buying, letting or renovating.
Enough time for loan approval and for the old mortgage charge to be removed and the new one registered, so that the transfer takes place exactly on the day your fixed rate ends.

Frequently asked questions

Can I turn down my current bank's offer even after it has sent it to me? Yes. You can move your loan to another bank on the day your fixed rate ends without a penalty. The law also allows you to repay the loan free of charge within three months of the bank notifying you of the new rate. Check the exact deadlines in your loan agreement and in the bank's letter.

When should I start refinancing? Ideally three to four months before your fixed rate ends. The new bank needs time to assess your application, value the property and arrange repayment of the original loan, and if you start too late, you may miss out on a better offer.

Are there land registry fees and valuation costs when refinancing? A new mortgage charge usually has to be entered in the Land Registry (katastr nemovitostí) and the property has to be valued. Some banks cover these costs as part of promotional offers, so include them in the total cost when comparing offers.

This article explains the general rules. For your specific agreement, the calculation of early repayment fees or the tax implications of a sale, we recommend checking everything with a lawyer, tax adviser or mortgage specialist.

If you are considering selling, buying a larger home or renovating as your fixed rate comes to an end, DALILE LIVING can help you with the property valuation, preparing the sale and finding a new flat, so that you can align the timing of the transaction with your financing.