Mortgages in 2026: how to get the best interest rate
Mortgages

Mortgages in 2026: how to get the best interest rate

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Bc. Ivan Kulinich, DiS.March 1, 20267 min read

Current state of the mortgage market

2026 has brought favourable conditions for mortgage seekers. After a series of base rate cuts by the Czech National Bank (CNB), average rates on new mortgages have fallen below 4% — for the first time since 2022. According to Fincentrum Hypoindex data, the average rate in February 2026 stood at 3.89%. New mortgage volumes rose 35% year-on-year, signalling a market recovery.

Comparing bank offers

Differences between banks are significant in the current environment. Raiffeisenbank offers a five-year fixed rate from 3.49% for clients with LTV (loan-to-value ratio) up to 70%. mBank offers 3.59%, Air Bank 3.65%. The large banks — Česká spořitelna and Komerční banka — sit at 3.9–4.1%.

The key is not to accept the first offer. A difference of just 0.3% on a CZK 4 million mortgage over 30 years amounts to savings of over CZK 270,000 over the full term. We recommend approaching at least 3–5 banks or using an independent mortgage advisor.

Fixation period: short or long?

In a falling rate environment, shorter fixed periods of 3–5 years make sense. Once the period expires, you can refinance under potentially even better terms. The five-year fix is currently the most popular choice — combining reasonable certainty with flexibility.

A ten-year fix (rates around 4.2–4.5%) suits conservative clients who prefer long-term payment stability.

How to get the best rate

  • **Keep LTV below 80%** — the more equity you put in, the lower the rate the bank will offer. Below 70% LTV gets the best terms.
  • **Demonstrate stable income** — employees with permanent contracts have an advantage. Self-employed individuals should have tax returns for at least 2 years.
  • **Minimise other debts** — banks assess total indebtedness. Pay off consumer loans and credit cards.
  • **Consider insurance** — life insurance or mortgage payment protection can bring a rate discount of 0.1–0.3%.
  • **Don't choose on rate alone** — compare processing fees, account charges and early repayment penalties.
  • When is the best time to take a mortgage?

    Analysts don't expect dramatic further rate declines. Inflation remains slightly above the CNB's target and there's limited room for significant easing. The current period with average rates below 4% is historically favourable, and delaying a decision can be risky — especially if property prices are rising at the same time.

    Need help choosing a mortgage or property? The Klik Home team works with trusted mortgage advisors and we'll be happy to arrange a free consultation.