Welcome To ISG’s Mortgage Basics

These mortgage basics are not specific to Czech Republic. All mortgages follow set rules and general principles the world over.

1. What do I want?
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The first step is to identify and understand your idea. This part you are be able to manage yourself. You should have an idea of:

        • What type of property you are looking for?
        • What is your budget?
        • What is your residential status in Czech republic?
        • What level of financing are you looking at?

2. What can I get?
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The next step is to find your property, ensure financing and check the transaction from the legal side.

The Czech reality market is emerging and finding the right property can take anything from one week to few months. The most important factors to consider are: condition of the estate, price per m2, location and type of ownership.

Most of flat purchases are financed through mortgages. We specialize in expat and foreigner financing and we can explain all possibilities that are available with the Czech banks. Each bank has a different policy when it comes to non-Czech residents and what is not possible in your bank is usually acceptable in some other.

Finally, it is essential to understand the legal part such as the purchase contract, escrow account or Land Registry office.

3. Time to buy

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In the last step we will sign the purchase contract most likely followed by escrow, mortgage and pledge contracts. Signature on some of the documents have to be verified and later submitted to the Land registry office. Purchase and mortgage contracts specifying payment and drawdown details should be carefully examined. Pledge contract is security from the bank placing a lien on the financing property and escrow contract is held by 3rd party – notary, lawyer or bank and blocks the money until the transaction is completed.

Customer service is key for us and we pride ourselves on the highest level of service provided, we also ensure every aspect of the transaction is carried out effectively and as smooth as possible.