In August, mortgage volumes cooled noticeably following the record-breaking month of July. Banks and building societies issued new loans worth almost 26 billion koruna – less than in the previous month, but still significantly higher than in the spring.
In August 2025, banks and building societies in the Czech Republic granted new mortgages with a total value of nearly 26 billion koruna. Compared with the record month of July, this represents a decline of 13 per cent. Nevertheless, activity remains at a clearly higher level than in the second quarter and, seasonally adjusted, ranks second for the year. Since the beginning of the year, the volume of new loans has totalled 206 billion koruna, around 60 billion more than in the same period last year.
The average interest rate on new mortgages fell slightly to 4.52 per cent. Compared with last year, this is 0.46 percentage points lower – reducing borrowers’ monthly repayments on average by just over 1,100 koruna, around 1.2 per cent of net income. At the same time, the average loan amount, after almost a year of continuous growth, fell slightly: from July to August it dropped to 4.26 million koruna. Compared with last year, however, it remains eight per cent higher.
The number of new contracts fell by 13 per cent in August to 6,086 – a decline of six per cent year on year. Since January, approximately 49,700 new mortgages have been signed, representing an increase of more than 25 per cent.
The volume of refinanced and top-up loans fell to 7.2 billion koruna in August. Even so, this figure remains well above previous years: 84 per cent higher than the 2024 average and more than double the 2023 level. The share of refinanced loans in the overall market rose to almost 22 per cent, compared with an average of 17 per cent last year.
