Can companies obtain a mortgage in the Czech Republic? And is there any difference between a mortgage loan for a person and for a company?

In the Czech Republic, a legal person can also apply for a mortgage loan / business loan for a property. Not only existing companies can apply but also a newly established business company, the main business activity of which will be renting of the purchased real estate. Purpose of the business mortgage will be the same as it would be for the personal mortgage loan, which may be the purchase of real estate or its reconstruction.

The procedure for obtaining financing is to a great extent the same, first calculations are made, then pre-scoring is conducted, an application is written and, if the application is approved by the bank, a loan is provided to the company.

Unlike for mortgages provided to natural persons, a loan for a company may differ in the proportion of down payment and money provided by the bank. For natural persons it is common that the applicants have their own resources only in the amount of 10 % of the purchase price. For legal entities, the required percentage of own funds may be higher. Banks may require down payment for the mortgage in the amount 20 % to 50 % of purchase price of the property.

If your company is considering purchasing a property and you would like to consult your investment project with a mortgage specialist, do not hesitate to contact us and arrange a free consultation.