The Czech National Bank Recommends Stricter Rules for Investment Mortgages from 2026

The Czech National Bank Recommends Stricter Rules for Investment Mortgages from 2026

The Czech National Bank (ČNB) has recently issued a recommendation that could significantly influence the investment property market over the coming years. If you are considering purchasing a property not only for personal use, but as an investment or rental opportunity, it is worth understanding what may change and how it could affect your financing plans.

From 1 April 2026, banks are encouraged to apply tighter limits on mortgages classified as investment mortgages. The biggest shifts relate to the ratio of the loan amount to property value, and to how much debt borrowers can reasonably take on compared to their income.

What is likely to change

Under the new recommendation, banks should ensure that investment mortgages meet these limits:
• Maximum LTV of 70 percent. Buyers will therefore need at least 30 percent of their own capital when purchasing an investment property.
• DTI capped at 7, meaning the total mortgage should not exceed seven times the borrower’s annual net income.

Importantly, these rules are meant only for investment properties. Mortgages for owner-occupied housing remain under the existing framework, as the ČNB aims to preserve reasonable access to housing while encouraging more responsible leverage among investors.

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Why the CNB is tightening investment financing

Over the past years, the Czech property market has seen strong price growth and rising activity from investors. While this has supported development and demand, it also increases systemic risks, particularly if too much leverage accumulates in the sector.
By requiring investors to contribute more of their own funds and keeping income-to-debt levels in check, the ČNB seeks to stabilize the market and reduce the likelihood of excessive indebtedness.

What this means for investors

If you are planning to buy a property as an investment or for rental income, these changes may affect your strategy. You can expect:
• the need for a larger cash contribution,
• stricter assessment of your income and repayment capacity,
• potentially more conservative bank policies when approving investment loans.
For homebuyers purchasing for their own living needs, the situation remains largely unchanged.

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How to prepare

Good planning becomes even more important. Review your savings strategy, simulate different mortgage options, and consider how your investment return would look under higher initial equity requirements. In some cases, it may make sense to move earlier. In others, waiting and preparing stronger capital may bring more stability and flexibility.
At Czech Advisors, we help clients evaluate scenarios, compare mortgage structures, and understand long-term implications before committing to a purchase. If you are considering an investment property, we are happy to guide you through your options.
Source: Czech National Bank, ČNB recommends stricter limits for investment mortgages; capital buffers unchanged(press release, 27 November 2025).

This article has been written by Maxmilián Rožek

Maxmilián Rožek

Mortgage Advisor at CzechAdvisors

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