The Czech mortgage market received a noticeable boost in June 2025, as banks and building societies issued new mortgages totalling CZK 29.4 billion. This represents a seven per cent increase compared to the previous month – a rise partly attributable to seasonal factors. However, even after seasonal adjustment, there was a modest uptick in both the volume and number of new mortgages issued.
Since the beginning of the year, the volume of newly granted mortgages has reached CZK 150 billion – CZK 50 billion more than in the same period last year. Including refinancing, the total mortgage volume for June stands at CZK 37.5 billion – a month-on-month increase of 9.3 per cent. Since January 2025, mortgages worth more than CZK 185 billion have been granted – an increase of 56 per cent compared to the first half of 2024.
Interest Rate Cut to 4.56 Per Cent Brings Fresh Momentum
One of the key drivers of increased interest in mortgage loans is the further decline in the average interest rate, which fell to 4.56 per cent in June. “Despite rising market interest rates, the average mortgage rate has continued to fall,” explains Jaromír Šindel, Chief Economist at the Czech Banking Association (ČBA).
An international comparison shows that Czech mortgage rates remain relatively low: while interest rates in Poland and Hungary hover around seven per cent, they remain slightly below the Czech level in Germany and Slovakia.
Number of New Mortgages Nearing 2019 Levels
The number of new mortgage contracts also rose slightly: in June, 6,990 new mortgages were concluded – around 5.7 per cent more than in May and 24 per cent more than in June 2024. After seasonal adjustment, the figure stands at just under 5,950 – about one per cent below the average of the past three months.
Since the start of the year, a total of 36,700 new mortgages have been granted – a year-on-year increase of 30.5 per cent. If this trend continues, the number of new mortgages could reach around 71,400 for the year – nearly 16 per cent more than in 2024 and roughly in line with 2019 levels.
Refinancing on the Rise
The rise in refinancing is particularly striking: in June, existing mortgages worth CZK 8.1 billion were refinanced – more than double the average monthly figure for the previous year. The share of refinancing in total mortgage volume thus climbed to 21.6 per cent – above 2022–2023 levels, though still well below the peak of nearly 29 per cent seen in 2020–2021.
The average refinancing interest rate in June was 4.51 per cent – around half a percentage point lower than a year earlier. For many households, this sends a clear signal: those refinancing now can benefit from more favourable terms.
