Mortgages and financing

Applicant creditworthiness (bonita)

In Czech: Bonita žadatele

Applicant creditworthiness (bonita) is a borrower's ability to repay a loan properly and on time. A bank assesses it from income, expenses, existing debts and payment history before deciding on a mortgage.

Also called: credit assessment, affordability assessment, úvěruschopnost

What it means

Creditworthiness (bonita žadatele, also úvěruschopnost) describes how well an applicant can repay a loan. The bank looks at how much you regularly earn, what you spend on housing and living costs, what other loans you have and how you repaid them in the past.

The outcome is not a single score but a decision on whether and how much the bank will lend. Two applicants with the same income can be offered different maximum mortgages, for example because of the number of dependent children or other loan payments.

How it works in the Czech Republic

You prove your income, typically with an employer's confirmation and bank statements if you are employed, or with a tax return if you are self-employed. The bank checks credit registers, for example the banking and non-banking client information registers (BRKI and NRKI) or the SOLUS register.

Banks look at the ratio of total debt to annual income (DTI) and of monthly debt payments to monthly income (DSTI). According to the ČNB, the statutory limits for these ratios are deactivated as of October 2026, but banks apply their own internal rules. For investment mortgages the ČNB has recommended a DTI of at most 7 since 1 April 2026.

For foreigners, banks usually also consider the type and length of residence in Czechia and whether income is paid in Czech crowns. Conditions differ between banks, so find out in advance.

Practical example

For example, an applicant with a net income of CZK 50,000 a month who is already paying off a car lease may get a lower maximum mortgage than an applicant with the same income and no other debts. Paying off the lease before applying can improve the applicant's creditworthiness.

What to watch out for

  • Before applying, cancel unused credit cards and overdrafts; banks may count their limits as debts.
  • Check your records in the credit registers and have any errors corrected.
  • Do not give false information in the application; the bank verifies it.
  • If your income comes from abroad or in a foreign currency, ask in advance whether the bank accepts it.

Frequently asked questions

Do DTI and DSTI limits apply in 2026?

According to the ČNB, the statutory DTI and DSTI limits are deactivated as of October 2026. Banks still assess creditworthiness by their own rules, and for investment mortgages the ČNB recommends a DTI of at most 7.

Does a co-applicant help?

A co-applicant with their own income can raise the amount the bank will lend, but they become a co-borrower and are liable for the loan.

Will the bank count rental income?

Some banks do, and conditions vary. In its recommendations the ČNB mentions separately loans where expected rent is counted as income and treats them as investment loans.

  • Mortgage (hypotéka)A mortgage (hypotéka) is a long-term housing loan secured by a lien on a property. The borrower repays it in regular monthly instalments, usually over many years.
  • LTV (loan-to-value)LTV (loan-to-value) is the ratio of the loan amount to the value of the collateral, i.e. the pledged property. It decides how much of a purchase a mortgage can cover and how much you must pay yourself.
  • Buy-to-let flat (investiční byt)A buy-to-let flat (investiční byt) is a flat bought mainly to rent out or to preserve the value of money, not to live in. Its return depends on the price, rent, running costs, taxes and financing.
  • RPSN (annual percentage rate of charge)RPSN (roční procentní sazba nákladů) is the Czech annual percentage rate of charge: the total cost of a consumer loan expressed as a yearly percentage of the loan amount, including fees, not just interest.
  • American mortgage (americká hypotéka)An American mortgage (americká hypotéka) is a non-purpose loan secured by a lien on property. The money can be used for anything, such as a car or paying off other debts, but your property serves as collateral.

Sources

Laws and official pages this text is based on (in Czech).

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

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