Can I repay my mortgage early in Czechia?
Yes — and the law hands you several free routes. With no fee at all you may repay up to 25 % of the principal every year (in the month before the contract anniversary), the whole mortgage at fixation end, on death, disability or long illness, and out of insurance payouts — and newly also when selling the property after 2 years of ownership, or on divorce. Outside those, contracts signed or refixed after 1 September 2024 carry a cap on the bank's costs: 0.25 % of the repaid amount per started year remaining to fixation end, at most 1 %. The trap is the transition: it covers only contracts made or refixed after that date, so older fixations run under the old rules. Outside fixation, repayment is always free.
📋 The rules
- Free: 25 % of principal yearly (month before anniversary) and fixation end
- Newly free: property sale after 2 years, divorce, death/disability
- Otherwise (since 9/2024): 0.25 %/started year to fixation end, max 1 %
- Applies to contracts/refixations from 1 Sep 2024
- Outside fixation: always free
🔓 Exceptions
- Pre-9/2024 contracts (until refixation): only real administrative costs
- Non-housing consumer loans: their own (milder) rules
- Repayment from insurance proceeds, or on death, disability and long illness: always free
⚠️ Penalties & fines
This is not a sanction but compensation of the bank's costs — and since 1 September 2024 it has a statutory cap: 0.25 % of the repaid amount per started year to the end of fixation, never more than 1 %. Three years before fixation ends you therefore pay 0.75 %, meaning CZK 7,500 on a million. What people overlook: every started year counts in full, so repaying days after the anniversary costs more than days before it, and the free 25 % payment can only be made in the month before the anniversary. A bank charging above the cap breaches the Consumer Credit Act, supervised by the Czech National Bank.
📎 Official sources
- Kalkulátor.cz · Early repayment from September 2024 (CS) →
- Hypoindex · The early-repayment fee (CS) →
- Kupní síla · Fee calculator 2024+ (CS) →
❓ Frequently asked
What do I pay if I repay 3 years before fixation ends?
For contracts and refixations from 9/2024 it is 3 × 0.25 %, so 0.75 % of the repaid amount, with a 1 % cap. On a million crowns that is CZK 7,500; older fixations pay administrative costs only.
How does the free 25 % work?
In the month before each contract anniversary you may repay up to 25 % of the principal free of charge — you simply notify the bank. Outside that window the payment counts as ordinary early repayment.
I am selling the flat — do I pay a penalty?
Not if you have owned the property for at least 2 years: repayment on sale has been free since the amendment, and so has divorce. With shorter ownership the usual 0.25 % per started year applies, capped at 1 %.
My fixation is from 2023. What applies to me?
The old regime until that fixation ends, meaning only genuine administrative costs of a few hundred crowns. The new rules kick in with your first refixation after 1 September 2024 — until then you are better off.
What if I have a floating rate?
Outside fixation, early repayment is always free, so there is no cap and no counting of started years. You can repay any amount at any time without waiting for the anniversary of your contract.
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