Mortgage to Loan or Credit Refinance

Loan refinancing means the repayment of the previous lending obligation, i.e. loan or credit provided by a legal entity or private individual the purpose of which was to invest in real property. Thus you may benefit from spreading the mortgage repayment to a longer period or get a loan charged with a lower interest rate than the previous one and concurrently reduce the burden on the family budget.

To refinance a loan or credit you may use these types of mortgage loans

• Mortgage Loan - loan which may be used to invest in real property
• Combined Products - loan in combination with construction savings or capital life insurance
• Mortgage Loan for Foreigners - opportunity for foreigners to get a mortgage for the reconstruction or construction of real property

These types of mortgage loans can be combined with these optional parameters

• Mortgage Loan up to 85% - intended for loans from 70% to 85% of the collateral value
• Mortgage Loan up to 100% - intended for loans above 85% of the collateral value
• Mortgage Loan with No Evidence of Income - if you do not wish to tell us how much you earn, you do not have to do so! We will provide you with a mortgage loan up to 50% of the collateral value. You need neither the standard document showing your income nor the tax return
• Mortgage Loan for No Fee - you will not pay the respective fees for the conclusion and administration of the loan in advance. This mortgage is charged with a slightly higher interest but unlike the fees you are allowed to reduce the tax base by the interest paid
• Progressive Repayment - at the beginning of the period of repayment instalments are lower in comparison to those applied to classical annuity instalments, which you also may choose, but they are increased over time (for young people under the age of 36)
• Regressive Repayment - at the beginning of the period of repayment instalments are higher in comparison to those applied to classical annuity instalments, which you also may choose, but they are reduced over time (for people with actually high income)
• Portion of the Mortgage Loan for No Specified Purpose - along with the mortgage to invest in real property you may get a certain amount of facilities which you may use for anything for the same low interest rate

Particular types of mortgage loans may be provided with any of these services at your discretion

• Insurance - at a single meeting to conclude a mortgage agreement you may also establish insurance for the building, construction or flat (Mortgage insurance), capital life insurance (Kvarteto) or risk life insurance (Garant)
• Guarantee of the interest rate - having received answers to your questions about your mortgage and delivery of basic documents we will reserve the interest rate effective as of the date of the delivery of the application for a period of 30 days. If in the period of the guarantee the interest rate falls, we will provide you with the mortgage loan at the lower interest rate
• Real estate appraisal - the usual price of real property to secure the loan will be done by our expert or an expert who co-operates with the bank

Documents for the establishment of a mortgage for loan or credit refinancing

• Draft loan agreement (or loan application) including all information about the household income and expenses (loan agreements, guarantor's obligations etc.)
• Confirmation of income from an employee or a tax return stamped by the Tax Authority of the mortgage loan applicant, or that of co-borrowers or guarantors. If you have other regular income you receive along with your earnings you may give evidence thus improving your solvency. There is no need to do so if you apply for the Mortgage with No Evidence of Income.
• Documents to real property to which a lien should be established - original copy of actual statement from the Land Registry, original copy of the land registry map, ownership title to the real property showing the existing owner and information whether it is encumbered with another lien or easement, appraisal done by an expert who co-operates with the bank (if you not decide to use the services of a bank expert)
• Loan agreement or credit contract which has to be refinanced including statements to the account from which the loan should be repaid

The above-mentioned list is not comprehensive, if may differ case by case. A detailed list of attachments to the Draft agreement is available at Basic Documents

The first way to Hypoteční banka

On the way to Hypoteční banka for the first (informational) meeting you should know:

• what purpose you need the mortgage for (loan or credit refinancing)
• the total amount of your investment (how much you need for the repayment of the former loan or credit)
• what documents you can deliver to show that the former loan or credit was used to invest in housing (e.g. loan agreement from the construction savings system)
• how much you have and how much you want to borrow (the maximum amount of the mortgage is dependent on the value of real property to be pledged)
• what is your income (income of all co-applicants makes a total) and what are your regular expenses (i.e. insurance, construction savings, other loans, child-support, etc.)
• which real property will be subject to pledge (real property for which you arrange loan refinancing, that it is in your hands, real property of a third person, i.e. your parents)
• how much you would like to repay on a monthly basis in order not to burden you family budget too much and whether you plan to make any early instalments.

Based on this information we will recommend the type of loan, suitable services, period of loan maturity (5 to 40 years) and fixed interest rate (1, 3, 5, 10 or 15 years, or P plus rate bound to the 1Y PRIBOR rate) and make an orientation calculation.