Every applicant for a loan must take into account that the bank or non-banking company will charge a certain interest for borrowing money. The interest rate indicates the percentage by which the amount borrowed increases over a certain period of time. For example, if you borrow CZK 10 000 for one year, you will pay CZK 1 000 in interest at an annual interest rate of 10 per cent.
Mortgage interest rate
ÚThe interest rate is one of the most frequently monitored parameters when choosing a mortgage. You can see current mortgage interest rates, for example, in our online mortgage calculator. In the vast majority of cases, Czechs take out mortgages with a fixed interest rate, where the rate does not change throughout the fixation period. You can also find variable rate mortgages, the amount of which depends on the rates announced by the Czech National Bank (note: monthly PRIBOR rates).

Interest rate does not include fees
When choosing a loan, it is advantageous to look not only at the interest rate offered, but also at the APR (Annual Percentage Rate of Charge). In addition to the interest rate, the APR also includes other costs associated with the acquisition of the loan, such as origination fees, loan account maintenance and so on.