Why Waiting for Lower Mortgage Rates in 2027 Could Cost You More Than You Think

Why waiting for lower mortgage rates could cost you more

Many buyers focus almost entirely on the interest rate. It is understandable: even a small difference can make a noticeable change to monthly repayments.

However, the price of the property matters just as much as the cost of borrowing.

If mortgage rates fall, more buyers may return to the market. This can increase competition, particularly in Prague and other popular locations. Sellers may become less willing to negotiate, and property prices may continue to rise.

According to the Czech Statistical Office, the average price of flats in Prague reached approximately CZK 131,520 per square metre in 2025. The national average was around CZK 72,410 per square metre. Across the Czech Republic, flat prices increased by approximately 10.6% during the year.

These figures illustrate why waiting can be expensive. A lower interest rate may not compensate for buying the same property at a significantly higher price.

For some buyers, purchasing sooner with a slightly higher rate may make more financial sense, particularly if they find a suitable property and can comfortably afford the repayments.

What should buyers expect from banks in 2027?

Mortgage conditions are not determined by interest rates alone. Banks also assess the applicant’s income, existing debts, savings, employment situation and the value of the property.

The Czech National Bank’s LTV limits are another important part of the process. The general maximum loan to value limit is 80%. Applicants under 36 buying their own housing may qualify for a limit of up to 90%.

However, these are regulatory limits, not a guarantee that every bank will offer the maximum amount. Individual banks can apply stricter internal conditions depending on the applicant and the property.

This is particularly important if you are planning to finance most of the purchase price with a mortgage. Your borrowing capacity can differ considerably between banks, even when your income and financial situation remain exactly the same.

Why expats may not get the rate advertised on the website

Having a Czech job, a salary in CZK and a stable employment contract does not necessarily mean you will get the same mortgage conditions as a Czech citizen.

Each bank has its own rules for foreign applicants. Some maintain internal lists of higher risk countries, which can affect the maximum LTV, interest rate or even whether they accept the application at all.

Other banks have specific requirements for how long you must have lived and worked in the Czech Republic. Česká spořitelna, for example, requires certain foreign applicants to have at least two years of residence and two years of employment in the country. Raiffeisenbank may apply an interest rate surcharge to applicants from outside the EU.

This also explains why qualifying for a 90% LTV mortgage under CNB rules does not guarantee that a bank will actually offer you one. Individual banks can apply stricter internal conditions.

The difference between banks can be significant. Finding the right bank is often more important than negotiating a few tenths of a percentage point off the advertised rate.

Should you buy now or wait until 2027?

There is no single answer that works for every buyer. If you have found the right property, have sufficient savings and can comfortably manage the monthly repayments, waiting purely in the hope of a lower mortgage rate may not be worthwhile.

On the other hand, if buying now would stretch your budget too far, taking on a mortgage simply because you are worried about future property prices is not a good strategy either.

It is worth comparing offers from several banks before making a decision. Look beyond the advertised interest rate and check the full conditions, including the required deposit, fees, fixation period and any restrictions that may apply to your situation.

You should also consider what would happen if your circumstances changed or your mortgage repayments increased when your fixed rate period ends.

The best time to buy is not necessarily when mortgage rates are at their lowest. It is when the property, financing and your personal financial situation make sense together.

For buyers in the Czech Republic, 2027 could bring a more predictable mortgage market. But predictable does not necessarily mean cheaper. Preparing early, understanding the differences between banks and comparing the actual mortgage conditions can make a much bigger difference than trying to guess exactly where interest rates will go next.