Updated 30/09/2026
Buy-to-let mortgages in Czechia 2026: LTV 70 % and DTI 7
Since 1 April 2026, stricter Czech National Bank limits apply to buy-to-let mortgages. How much equity you need, what counts as a buy-to-let mortgage and how it affects returns.
From 1 April 2026, the Czech National Bank (ČNB) tightened the conditions for mortgages on buy-to-let flats. The loan may cover at most 70 % of the property value (LTV, loan-to-value) and total debt must not exceed seven times annual net income (DTI, debt-to-income).
What counts as a buy-to-let mortgage
According to the ČNB, it is a loan to buy a third or further residential property, or a property intended for letting. For owner-occupied housing the LTV limit stays at 80 % (90 % for applicants under 36), and the DTI and DSTI (debt service-to-income) limits are switched off.
How much equity you need
| Flat price | Min. equity (30 %) | Max. loan (70 %) |
|---|---|---|
| 4,000,000 CZK | 1,200,000 CZK | 2,800,000 CZK |
| 6,000,000 CZK | 1,800,000 CZK | 4,200,000 CZK |
| 9,500,000 CZK | 2,850,000 CZK | 6,650,000 CZK |
On top of this, add the transaction costs (legal services, valuation, possibly an agent's commission and furnishing), which the bank usually does not finance. LTV is calculated from the bank's valuation, which may be lower than the purchase price.
Interest rates
The average rate on new mortgages was around 5.0 % in both August and September 2026 and is edging up. Buy-to-let mortgages tend to be a few tenths of a percentage point more expensive. The biggest risk is refixing: Czech mortgages have a fixed-rate period (fixace), after which the rate is reset. In the calculator's Detailed mode, set the Rate after fixation 1-2 points higher and see what it does to cash flow.
Effect on returns
- Lower leverage (30 % equity instead of 10-20 %) reduces the return on equity (IRR), but also the risk and the monthly top-up.
- A mortgage rate higher than the flat's gross yield means negative leverage: every borrowed koruna costs more than the rent earns on it. The return then rests mainly on appreciation.
- For a rental, interest is tax-deductible (when claiming actual costs), which gives back part of the cost.
The calculator warns you when the equity you enter does not meet the 70 % LTV limit.
Sources
- ČNB: Stricter limits for buy-to-let mortgages (press release)
- Hyponamiru: mortgage interest rate history
This text is indicative and does not replace tax, legal or financial advice. For binding decisions consult a Czech tax adviser. · Privacy policy · Terms of use ·