Czech mortgage fixation ending: what to check and when

Why the end of the fixation matters

You don't cancel a mortgage the way you cancel insurance or energy. What matters is the end of the interest-rate fixation: at that point you can repay the loan without a fee — and so move it to another bank — or accept a new rate from your current one.

If you do nothing, you usually get whatever rate the bank offers, which may not be the best on the market.

What the law says

Before the fixation ends, the bank tells you the new rate. Under the Czech Consumer Credit Act you can then repay without a fee in connection with the end of the fixation; the exact window depends on that notice, so check it in your contract and in the bank's letter.

Independently of the fixation, once a year on the contract anniversary you can repay up to 25 % of the loan without a fee.

Timeline

• 4 months before the fixation ends: compare other banks' offers and refinancing terms.
• 3 months ahead: a new bank needs time for the property valuation and approval.
• After the new-rate notice: decide, and watch the window for fee-free repayment.