Dear Clients,

Today we’d like to share a few thoughts on the recent changes in mortgage interest rates and how they could affect both your existing and future property financing.

We are observing a continuing trend of declining interest rates, both from the Czech National Bank and mortgage lenders. We’ve been considering how we can best help you in this situation. Many of you ask us about refinancing your mortgage to get a lower rate. However, we’d like to present you with an alternative that can be equally beneficial – using so-called “retention” with your current bank.

“Retention” refers to the department within the bank that, upon your request – with our assistance as your advisors – can approve a reduction in your interest rate even during the fixed-rate period. We have practical experience with this process from 2020–2021, when mortgage rates were also falling. This is nothing new, and it’s an option we routinely explore with clients.

Our recommendation is to consider staying with your current bank and looking into how we can work together to reduce your current rate during the fixed period. This can save you money not only on interest but also on costs related to refinancing (e.g., property valuation and land registry fees for deleting and registering a new lien).

We continuously monitor interest rate developments and intend to keep you informed about the mortgage market situation. Don’t hesitate to reach out to us for up-to-date information. Our goal is to find the best way to reduce your interest rate even during the fixed period – especially relevant for clients who took out mortgages in the past two years.

For us, a mortgage is not a one-time service but part of long-term financial planning and client care. We are here for you, so if you have any questions or requests, feel free to get in touch.