Each mortgage loan is repaid in regular monthly instalments. In domestic banks, you will exclusively encounter an annuity mortgage payment, where the amount of the monthly payment does not change throughout the selected fixation period. In addition to the annuity payment, there are two other repayment methods, namely degressive and progressive. At present, these repayment methods are only a theoretical possibility, as none of the Czech banks offer them.
The repayment amount increases over time
In the case of progressive repayment, the amount of the monthly mortgage payment increases gradually. The monthly payment is fixed for one year and is adjusted annually by a so-called growth factor. The lower repayment in the first years of the mortgage is particularly advantageous for younger mortgage applicants who are at the start of their careers and are expected to have a gradual increase in income.