If you’re reading this, it’s because you already bought a property with a mortgage here in the CR.
You either got it through your bank that you use or maybe through a mortgage broker and you’ve been paying the payments on time since you’ve had it.
Since you have it, you also probably learned that your mortgage has a fixation. The most common is 5 years, which means that your interest rate is locked for those 5 years, until then, you can’t make changes to it.
BREAKING NEWS: It is possible to change your rate and even your bank before the fixation period!
Yes, but won’t I be paying large fee for this? According to the new laws of the CNB: Banks are not allowed to charge huge fees for breaking contract.
Check what is your current rate, it might already be quite low and therefore not worth the switch
If you know that you could get better elsewhere, you need to make an official request at your bank for the cost of paying off the mortgage earlier (there’s a special way to ask for this)
Your bank might be worried that you will leave them for another and can send you a better offer. Then you can take it or leave it for some lower rate at some other bank
Keep in mind, if you originally took a 90% LTV mortgage, but have already paid some off and some time has gone by, it may be possible to refinance it for 80% LTV and get better rates! The logic is that the mortgage amount is going down via your payments, but the value of your property is going up! These two factors can create a bigger gap in between what you owe the bank and what is the value of your property!
If you need any advice on how to proceed, you can ask us for free!
