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Pre-mortgage Loan

A pre-mortgage loan from Komerční banka.

A Pre-mortgage Loan is intended for:

  • citizens of the Czech Republic
  • foreigners with permanent residency in the Czech Republic
  • citizens of EU Member States with a residency permit – temporary or permanent (in the case of married couples, at least one must be a Czech citizen or have a residency permit or permanent residency permit)
  • up to four people may be applicants, representing a maximum of two households
  • married couples are always regarded as co-applicants for the loan (unless they have restricted joint assets)

Characteristics of a Pre-mortgage Loan:

  • investment in real estate
  • or a co-ownership share as part of privatisation of housing stock
  • the purchase of a cooperative flat
  • beginning construction of real estate in the initial phases by a contractor
  • construction by the client, for payment of advance invoices
  • beginning construction of real estate on a plot of land owned by a city ormunicipality
  • beginning “fast” construction of prefabricated family houses
  • reconstruction, modernisation or repair of real estate by the client, for payment of advance invoices
  • settlement or purchase of co-ownership or inheritance claims towards real estate if:
    • the client does not own any other real estate suitable for use as security
    • the seller is not willing to transfer ownership rights to the real estate being sold before payment of the purchase price
    • the seller is not willing to draw up right of lien for the real estate being transferred
  • consolidation of formerly provided loans or credit used for investment in real estate
  • a Pre-mortgage Loan is provided in combination with a subsequent Mortgage Loan or Bridging Mortgage Loan
  • the minimum level of the loan is CZK 100,000
  • the maximum level is limited by:
    • the level of the subsequent Mortgage Loan, which will be used for repayment of the Pre-mortgage Loan
    • the price of the pledged real estate, which is determined by the bank
    • the volume of the investment in the real estate (budget costs, purchase price etc.)
    • the client's ability to make repayments
  • fixed interest rate for the whole duration of the transaction
  • a Pre-mortgage Loan must be secured using a means acceptable for KB
    • guarantee by a third party
    • right of lien to a debt – term deposit with KB at the minimum level of CZK 5,000
    • right of lien to real estate – always in the event of construction/reconstruction by the client when securing the real estate
  • a Pre-mortgage Loan can be provided individually without security up to the level of CZK 3 mil. in the following cases:
    • purchase of a flat as part of privatisation
    • purchase of a cooperative flat
    • “fast” construction of prefabricated family houses or construction of family houses on a plot of land owned by a city or municipality
You can draw on a Pre-mortgage Loan:
  • in a one-off manner or 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 a Pre-mortgage Loan:
  • for a specific purpose (with submission of specific documents proving the purpose of drawing):
    • 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)
Repayment of a Pre-mortgage Loan:
  • is divided into:
    • regular monthly settlement of interest as of the 10th or 15th day of the month
    • one-off repayment of the principal from the subsequent Mortgage Loan
  • the maturity is set at up to 1 year or 2 years in the case of construction/reconstruction by the client

Advantages of a Pre-mortgage Loan:

  • possibility of financing construction or reconstruction by the client
  • possibility of financing advance invoices
  • you can also purchase real estate if the seller is not willing to transfer ownership rights to you before transfer
  • valuation of the real estate is arranged by KB including procurement of the Ownership Deed from the Cadastral Register
  • we can lend you up to 100% of the value of the secured real estate

A Pre-mortgage Loan allows you to:

  • invest into real estate even if you are not able to take out a mortgage immediately
  • 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
Requirements for a Pre-mortgage Loan:
  • a KB current account in CZK for a natural person for the whole duration of the transaction
  • identification documents (personal ID card, passport)
  • documentation proving your level of income
    • Confirmation of income from dependent activity form
    • or a tax return
  • an application for provision of the mortgage loan
  • other documents depending on the purpose of the loan
    • purchase contract
    • building permit
    • project documentation
    • etc.
  • documents relating to the subject of the loan (e.g. purchase title, etc.)

Representative example

For better clarity, we have prepared a Promotional Offer, which includes a representative example.

How to get a Pre-mortgage Loan?

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

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