Flexible Mortgage

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Characteristics of the Flexible mortgage:

• possibility of decreasing instalments by as much as 50% or repeatedly paying an extraordinary instalment of up to 20% of the loan
• possibility of deferring the start of repayment by as much as 12 months
• possibility of interrupting repayment for a period of up to 3 months (if repayment is deferred, no payments are made on the principal or interest)
• change to the level of instalments or interruption of repayment can be performed a maximum of once per year

You can use the Flexible mortgage to finance:

• purchase of real estate into your ownership (as well as a co-ownership share)
• construction of real estate
• reconstruction, modernisation and repair to real estate
• purchase of a cooperative flat
• settlement of co-ownership and inheritance claims towards real estate
• prepayment of rent in order to conclude a lease contract
• consolidation (settlement) of formerly provided loans or credit used for investment into real estate
• reimbursement (repayment) of an investment into real estate not older than 1 year already made by the client
• this must always concern financing of the client's own housing requirements
• purposes can be mutually combined, e.g. purchase and completion of construction, purchase and reconstruction etc.
• secondary costs relating to investment into real estate, the total level of these costs may not however exceed 50% of the volume of the mortgage loan
  • a fitted kitchen
  • fitted wardrobes
  • project documentation
  • geometric measuring of the building
  • building supervision
  • commission for an estate agency

The minimum level of the loan is CZK 200,000 and the maximum level is limited only by:

• 85% or 100% of the price of the mortgaged real estate (deferral of instalments at the beginning is only possible with a loan of up to 85% of the price of the mortgaged real estate)
• the total level of the investment (budget costs, purchase price etc.)
• the client's ability to make repayments

You can draw on the mortgage loan:

• in a one-off manner
• gradually over the course of 2 years from the date of signature of the contract

drawing must be commenced no later than 9 months from signature of the loan contract

Method of drawing on the loan:

• for a specific purpose (with submission of specific documents proving the purpose of drawing), in the following manner:
  • to the account stipulated in the purchase contract (in the case of purchase)
  • to suppliers' accounts (in the case of construction/reconstruction)
  • to a current account (in the case of reimbursement)
• as a deposit to the client's current account
  • without submission of specific accounting documents – this only relates to reconstruction
  • drawing up to the maximum level of 85% of the current price of the mortgaged real estate, up to max. CZK 2 mil.
  • on a one-off basis, the loan can be drawn on up to a maximum level of 70% of the current price of the mortgaged real estate, the remaining part after submission of proof of actual performance of reconstruction work drawn up by a bank assessor

Repayment of the Flexible mortgage:

• monthly in the form of annuity amounts (always as of the 10^th or 15^th day in the month), not until complete drawing on the loan
• maturity: from 5 to 30 years
• fixed interest rate over the period of validity of the interest conditions – from 3 to 10 years and 15 years from signature of the loan contract

Requirements for the Flexible mortgage:

• security using right of lien to insured real estate, with the premium endorsed in favour of KB and the real estate must be located within the territory of CZ
• a current account for natural persons – individuals in CZK held with KB for the whole duration of the loan transaction

Advantages of the Flexible mortgage:

• possibility of reducing the level of instalments according to the current level of income without any additional charges
• possibility of faster early repayment of the loan thanks to repeated extraordinary instalments of up to 20% of the loan with no penalties
• possibility of gaining free resources for the family budget in relation to decrease in the level of instalments
• possibility of interrupting repayment by 1 to 3 months
• possibility of deferring the start of repayment by up to 12 months
• possibility of gaining up to 100% of the required amount
• deduction of interest paid from your tax base (maximum of CZK 300,000 per year)
• provision of all-inclusive services including valuation of the real estate and obtaining the Ownership Deed from the Real Estate Register at one branch
• possibility of a discount on the interest rate if you arrange KP risk life insurance at branches of KB
• possibility of using the mortgage for financing of secondary costs up to the level of 50% of the loan

The Flexible mortgage allows you to:

• flexibly react to changes in your financial situation during the course of repayment – decrease, interrupt, pay an extraordinary instalment free of charge or defer repayment of the loan
• resolve the question of housing, reconstruct or modernise real estate
• settle co-ownership or inheritance claims towards real estate
• repay older loans or credit provided for investment into real estate

How to get a Flexible mortgage?

• contact your relationship manager
• call the free KB Info line on 800 521 521

Related information:

• Explanation of terms used for purposes of information about consumer credits, information on possibility to withdraw from a consumer credit agreement and on the right to earlier repayment of a credit (PDF file)
• I need the forms for product opening (PDF file)
• Mortgage loan guide

Related Products

• 2 in 1 mortgage
• Back and Forth Mortgage
• Creditor Protection Insurance for a KB Mortgage Loan
• Property Insurance
• Municipality Package
• Expresní linka

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