Introduction

Buying a property is one of the biggest financial decisions in life. Done right, a mortgage can save you time, money, and stress. Done wrong, it can cost you hundreds of thousands — or even derail the entire purchase.

From our experience, here are the five most common mistakes{" "} people make when arranging a mortgage in the Czech Republic — and how you can avoid them.

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1. Starting Too Late

Many people only reach out after signing a reservation agreement. By then, deadlines are tight, options are limited, and the risks are high.

A mortgage is a complex process with multiple steps — from income verification to property valuation. Starting early, ideally several months in advance, gives you the time to prepare, adjust your creditworthiness, and secure the best possible conditions.

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2. Skipping Legal Help

Buying a home without a lawyer is risky. For a fraction of the property price, a good real estate lawyer can protect you from unclear contracts, ownership disputes, and hidden risks.

We’ve seen countless cases where a lawyer’s intervention prevented financial disaster. Prevention is always cheaper — and less painful — than litigation.

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3. Falling for "Lowest Rate" Ads

Low advertised interest rates look attractive, but they rarely show the full picture. Fees, penalties, and strict conditions can turn a “cheap” loan into the most expensive one.

Instead of chasing the lowest number, look at the overall cost and flexibility of the mortgage.

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4. Believing Shorter Term = Always Better

While shorter terms reduce total interest paid, they also raise your monthly payments and reduce flexibility.

Lower monthly installments mean more financial security
Inflation reduces the real burden of long-term debt
Extra repayments are usually allowed (up to 25% per year for free)
Free cash can be used for investments instead of debt overpayment

A longer term gives you peace of mind. You can always repay faster, but lowering installments later is much harder.

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5. Trusting Only Your Bank

It feels natural to ask your own bank for a mortgage — but the reality is that banks fight harder for new clients than loyal ones.

Without comparison, you risk overpaying. The first offer, especially during refinancing, is rarely the best. Negotiation and benchmarking against multiple banks almost always pays off.

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Conclusion

A mortgage can be a safe, predictable tool — or a very expensive mistake. The difference lies in preparation, negotiation, and the right expertise at your side.

👉{" "} Book a free consultation{" "} {" "} and let’s make sure your mortgage works for you, not against you.

Need more tips? Read more:{" "} Mortgage guide for foreigners in the Czech Republic.

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