CBA Hypomonitor: the volume of new mortgages rose to CZK 321 billion last year. And is the second strongest in history
Average mortgage rate rises to 4.49%
Prague, 16 January 2025 - In the whole year 2025, banks and building societies granted new mortgage loans worth CZK 321 billion, which represents a year-on-year increase of 41% and the second strongest year in terms of volume after 2021. Together with refinanced loans worth CZK 85 billion, the total volume of the mortgage market reached CZK 406 billion, which is another significant growth compared to CZK 275 billion in 2024. Even after taking into account house price growth, real growth in the new mortgage market was still very strong, for example in terms of the increase to 3.8% of GDP from 2.8% in 2024. The narrative of a strong recovery is illustrated by the increase in the number of new mortgages by almost a quarter to 76 thousand in 2025, accompanied by an almost 15% increase in the average mortgage amount to CZK 4.21m in 2025 and to almost CZK 4.5m at its end.
In December 2025, banks granted new mortgages worth CZK 28.6 billion. Compared to November, activity remained essentially unchanged despite the seasonal impact of Christmas. The average mortgage rate remained slightly below 4.5% in December. Its December level is thus 0.31 percentage points lower than the 4.8% rate a year ago, which reduces monthly mortgage payments by around 0.9% of the applicant's net income, i.e. by CZK 800. If the market were to maintain the momentum of the last three months at a seasonally adjusted average of almost 30 billion new loans, this would imply a volume of new mortgages of CZK 375 billion in 2026, assuming a 5% growth momentum in the average mortgage amount. This would represent a 17% year-on-year increase (or an 11% increase to 357 billion, holding the average mortgage rate constant). However, this will be counteracted by the CNB' s stricter measures on so-called investment mortgages, which affect around 9% of cases and will apply from Q2 (i.e. a mechanical impact of -7% points).
The above information comes from the CBA Hypomonitor, which captures data from all domestic banks and building societies providing mortgage loans.
Table 1: Summary of mortgage origination volumes and average interest rates for December 2025
monthly values | values since the beginning of the year | ||||||
Volume | Number | Rate | Volume | Number | Rate | ||
Total | 37,1 | 8 715 | 4,48 | 406,4 | 100 066 | 4,57 | |
New loans | 28,6 | 6 366 | 4,49 | 321,4 | 76 117 | 4,57 | |
of which: | |||||||
for purchase | 23,0 | 5 088 | 4,49 | 257,4 | 59 888 | 4,57 | |
for construction | 3,3 | 756 | 4,43 | 45,8 | 11 199 | 4,54 | |
Other | 2,3 | 522 | 4,59 | 18,2 | 5 030 | 4,72 | |
Refinanced from another institution | 7,1 | 1 978 | 4,45 | 70,1 | 19 935 | 4,53 | |
Refinanced internally, increased | 1,3 | 371 | 4,44 | 14,9 | 4 014 | 4,54 | |
Source. | |||||||
"The end of December maintained a strong pace of nearly $30 billion in new mortgage originations despite Christmas.And while market interest rates eased the pressure on stable mortgage rates, the continued brisk pace of average mortgage rates is likely to keep the central bank on its toes, both in terms of interest rates and macro prudential measures," believes Jaromír Šindel, chief economist at the Czech Banking Association.
Mortgage market in 2025: further strong volume growth of 41% and almost a quarter in numbers
In the full year 2025, banks and building societies granted new mortgage loans worth CZK 321 billion. This is CZK 93 billion more than the CZK 228 billion created in 2024. This year-on-year jump corresponds to a 41% increase. On top of that, mortgages were refinanced to the extent of CZK 85 billion, bringing the entire mortgage market to CZK 406 billion in 2025 from CZK 275 billion in 2024. If we adjust the volumes for the increase in house prices of around 15-16% (according to various statistics), the volume of new mortgages grew slightly less in real terms. This corresponds to a more moderate increase in the number of new mortgages in 2025, by less than a quarter to more than 76,1 thousand, and a nearly 15% increase in the average amount of a new mortgage granted to CZK 4.21 million.
New mortgages were financed at an average rate of 4.58% in 2025, half a percentage point lower than in 2024, while the spread to the market swap rate curve was less than one percentage point, slightly below the long-term average. The average monthly mortgage payment in 2025 was just under CZK 22,800, up 8.6% from 2024, and slightly above the likely more than 7% increase in average nominal wages last year. The average year-on-year increase in the monthly mortgage payment of around CZK 1,800 in 2025 mainly reflected the higher average mortgage level with an increase in the payment of almost CZK 2.9k. CZK, while the lower mortgage interest rate reduced the average monthly payment by more than CZK 1.2 thousand. CZK.
Chart 1: Annual volume, number and average amount of mortgages granted between 2020 and 2025
Source: CBA Hypomonitor
"The year 2025 became the second most successful year in terms of mortgage volume in the 30-year history of the mortgage market in the Czech Republic. Given the insufficient supply of flats and houses and their slow construction, the positive environment for economic growth, the unprecedented increase in real wages in recent years and the deferred demand for own housing, we expect this year's mortgage volume to grow by around 13% year-on-year to approximately CZK 432 billion.While the mortgage market is expected to grow in double digits, we expect the annual dynamics of property prices to slow down to higher single digits," says Martin Vašek, CEO and Chairman of the Board of Directors of ČSOB Hypoteční banka and ČSOB Stavební spořitelna.
December confirmed strong mortgage volumes at almost CZK 30 billion in the second half of the year
December continued strong mortgage volumes despite Christmas. In December, banks and building societies actually granted new mortgage loans without refinancing for CZK 28.6 billion. Compared to November, new mortgage activity thus rose by around 2% in volume terms, despite the usual 5% decline in December. This difference reflects a continued strong mortgage market rather than an immediate reaction to the central bank' s tightening of requirements for so-called investment mortgages at the end of November, effective from April this year. The volume of new mortgage originations in December was around 36% higher than in the second half of last year. In year-on-year terms, the growth in the volume of mortgage originations strengthened to 45% in December from 30% in November, following an average 83% year-on-year increase last year. Around 80% of new lending volume this year has been for purchase and 14% for construction, compared with 74% and 20% respectively in the previous five years.
The number of new mortgages fell slightly month-on-month to 6 366 in December, but this is 25% higher than a year ago. We estimate the seasonally adjusted number to be close to 6,500, which is about 6% below the average number (6,901) in the previous three months. The dynamics of the number of new mortgages from the last three months, i.e. for October to December, imply an increase to almost 80k this year, i.e. in 2026. This would be almost 5% higher than the over 76k units recorded in 2025 (+23.5% y/y). However, even so, this year's numbers would remain below the average numbers of around 95 thousand from 2016 to 2018 or the 114 thousand from 2021.
"Last year, we achieved our second consecutive best result ever in terms of the number and volume of new mortgages. This success confirms not only the gradual recovery in demand but also our strong market position. The stabilisation of interest rates has brought greater certainty to clients and supported their decision-making.Unless there is a significant negative shock in the form of higher market resources on the interbank market, we expect the positive trend to continue in 2026," expects Zdeňka Kovářová, Mortgage Manager, UniCredit Bank.
The volume of externally and internally refinanced and increased loans maintained a high share of the mortgage market, although their volume fell to CZK 8.5 billion in December. However, this is 117% higher than the average 3.9 billion refinanced per month in 2024 and almost four times the average 2.2 billion refinanced in 2023. Although the share of refinanced loans in total mortgage originations fell slightly to 22.9%, it remained above the average 22.5% share from the second half of the year in December and is thus well above the 17.2% share from 2022-2023, but still below the nearly 29% share from 2020-2021, when households refinanced at a mortgage rate of 2.14%. In December 2025, households refinanced at 4.45%, down nearly 0.3 percentage points from 4.72% a year ago. The higher refinancing volumes reflect the confluence of expiring longer fixings from the low interest rate period and shorter fixings from the recent period of higher interest rates.
Overall, banks and building societies granted new and refinanced mortgages in December in the amount of CZK 37.1 billion, 0.1% more than a month earlier. The total volume of mortgages in the past year has thus reached CZK 406 billion, a 48% increase compared to 2024.
Chart 2: New mortgages granted without refinancing
InDecember 2025, banks and building societies have kept the volume of new mortgages close to CZK 30 billion
Source: CNB, CBA Hypomonitor (volumes before 2020 are from CNB statistics).
Chart 3: Average mortgage amount by purpose
The average size of a newly granted mortgage rose slightly to CZK 4.49 million in December.
Source: CBA Hypomonitor
The average mortgage rate rose marginally to 4.49% in December and market interest rates eased in December
Market interest rates stabilized at a higher level in December, but the average realized interest rate on new mortgages rose slightly to 4.49% in December from 4.48% in November. Its December level is thus 0.31 percentage points lower than the 4.8% rate of a year ago, which reduces monthly mortgage payments by approximately 0.9% of the applicant's net income, or CZK 800. By comparison, the average mortgage rate in 2024 was 5.07% compared to 5.81% in 2023.
Czech market interest rates,[1] which have a key influence on mortgage rates, eased pressure in December, which was further eased by more favourable inflation data published in January. Czech five-year interest rate swaps, while only marginally down 0.02 percentage point on average in December to 3.93%, remained above October's 3.81%. However, November's consumer inflation, the less hawkish tone of the CNB's December decision, as well as December's steady consumer inflation rate, had already led to a correction in market interest rates in late December and early January. In the case of the five-year swap rate, these were around 3.75% in the first half of January, around September's levels but still well above, for example, September 2024's 3.2%.
And while the December mortgage rate was 0.81 percentage points above average market swap rates, about 0.26 p.p. below the long-term average since 2014 (1.07 p.p.), during January, that rate differential (December mortgage rates and January market rates) would have risen to 1 p.p., near the long-term average.
[1] These are primarily long-dated interest rate swaps (IRS), which reflect the price of money at longer maturities, such as 2 to 10 years.
Chart 4: Average mortgage interest rate - new business
Despite a slight increase in December, it remains well below last year's level of 4.8%.
Source: CNB, CBA Hypomonitor
Chart 5: The easing of December inflation and the cooling of the inflation outlook for 2026 have depressed market interest rates and thus upward pressure on mortgage rates
Source: LSEG, Macrobond (9 December 2025), CBA
Czech market interest rates reflected not only Czech economic data but also higher foreign rates. US five-year interest rate swaps rose to 3.69% in December from 3.63% in November and were 0.43 bps below their 2024 average. Euro five-year swaps rose to 2.56% in December from 2.39% in November and were 0.02 bps below their average level of 2.58% last year.
The average size of actual new mortgage originations was up from 4.49mn in December. CZK 4.5 million, it remains on an upward trajectory
The average size of actual new mortgage originations rose slightly to CZK 4.49m in December. CZK, i.e. by more than 2% month-on-month. Its size is thus 16% higher than the CZK 3.86mn in the same period last year. CZK a year ago. Mortgages for the purchase of real estate exceeded the average size of a new mortgage by 2% this year, while mortgages for construction were 3% smaller. Achieving a higher mortgage is made possible by the gradual decline in mortgage rates or the gradual rise in real household wages (4.5% y/y in Q3-2025 or charted here) but with slower growth in disposable income, along with the continued relaxed macroprudential income limits by the CNB so far (only 80% LTV limit or 90% for applicants under 36). These will be tightened for so-called investment mortgages from April 2026.
Mortgage levels are then also linked to the development of house prices, which continued to grow strongly at almost 11% year-on-year in the third quarter of 2025, or 16% in the case of apartment prices. Supply prices slowed quarter-on-quarter to 2.4% in the final quarter of 2025, the lowest increase since mid-2024. However, the pace remains above the long-term average of 1.8%. According to data from Flat Zone, the average transaction price of new apartments on first sale in the Czech Republic reached 141.6k in November. CZK/m2 (see the study on the CBA Monitor here or the charts on the CBA Monitor).
Impact on the average monthly mortgage payment of around CZK 24.1 thousand in December
The combination of the fall in interest rates and the higher average mortgage amount in December 2025 compared to the 2024 averages increased the average monthly mortgage payment by CZK 3.1k. Kc. The scenarios of the evolution of the monthly payment for different mortgage maturities are shown in Table 2. It suggests that a fall in mortgage rates of almost 0,6 percentage point relative to their average rate of 5,07 % in 2024 would, for an average mortgage size with a typical repayment term of around 26,8 years, reduce the monthly repayment by less than CZK 1 500 to around CZK 24,1 thousand. This represents a reduction of CZK 1,500,000, i.e. 1,6 % of the applicant's net income compared to the average repayment in the previous year. Compared to the average mortgage rate of 5.81% in 2023, the savings due to the interest rate amounted to less than CZK 3 500 for a mortgage at its current average value.
However, the current average mortgage amount is 22% higher than its average amount in 2024, which contributes to an increase in the monthly payment of CZK 4.4k. The average monthly mortgage payment in the previous year is linked to last year's average mortgage amount, but at the current interest rate. The mortgage payment of CZK 1 million with a 30-year maturity at current interest rates is around CZK 5.1 thousand.
Conversely, compared to the average 2.8% mortgage rate for new mortgages in 2019, the current refinance mortgage rate of 4.45% raises the monthly payment on an average mortgage to over CZK 1,600, about 3.2% of the current gross average wage, when the loan term is shortened.
Table 2: Illustration of the average monthly mortgage payment by length of repayment and interest rate
Average size of a new mortgage in CZK: | 4 490 660 | ||||||
Average interest rate in %: | 2,0 | 3,0 | 4,0 | 4,49 | 5,0 | 6,0 | |
Monthly instalment: | |||||||
Mortgage maturity in years: | 15 | 28 900 | 31 010 | 33 220 | 34 340 | 35 510 | 37 890 |
20 | 22 720 | 24 910 | 27 210 | 28 390 | 29 640 | 32 170 | |
25 | 19 030 | 21 300 | 23 700 | 24 940 | 26 250 | 28 930 | |
26,8 | 18 080 | 20 360 | 22 810 | 24 060 | 25 400 | 28 130 | |
30 | 16 600 | 18 930 | 21 440 | 22 730 | 24 110 | 26 920 | |
Source: CBA [1] | |||||||
Note: the coloured column corresponds to the interest rate of the latest CBA Hypomonitor, other rates are illustrative; the coloured row corresponds to the average maturity of new mortgages according to CNB data; amounts are rounded to tens of crowns. | |||||||
Chart 5: Illustrative comparison of the average monthly mortgage payment with a year ago, depending on the interest rate, mortgage size and maturity in years
In a year-on-year comparison, the fall in the mortgage rate resulted in a saving of CZK 810 on the average monthly mortgage payment, but the increase in the average mortgage amount caused an increase of CZK 3 360.
Source. Note: Amounts are rounded to tens of crowns.
Chart 6: Seasonality of new mortgage loans
Source: CBA Hypomonitor
Note: These are actually new mortgages (i.e. excluding refinancing and increases). The underlying data is available in the xls file attached on the CBA Hypomonitor website. The outlook to the end of the year (fcst) is a snapshot - based on the current trend, not a model prediction.
Chart 7: Distribution of new mortgage loans by purpose
Source: CBA Hypomonitor
Note: The last figure represents the average for the last 12 months.
CBA publishes summary statistics for the entire banking market
The Czech Banking Association, in cooperation with its member banks, publishes new aggregate statistics on the housing market. These are mainly the volumes and numbers of newly granted and refinanced mortgages and the respective interest rate. These statistics are published by the CBA in aggregate form for the entire banking sector on a regular basis around the middle of each month. All domestic banks and building societies providing mortgages in the Czech Republic participate in the survey. The data are available from January 2020 in the attached file on the website www.cbaonline.cz, where the relevant statistics can also be found separately for banks and building societies. The above figures are for the sector as a whole, which can also be viewed in a simple graphical form on the cbamonitor.cz website.
Methodology of the CBA Hypomonitor
The CBA Hypomonitor divides mortgage loans granted by banks and building societies to households into several categories in order to distinguish new loans from refinanced or internal refixations. New loans are then reported in categories according to the purpose of the loan:
1. new loans
These are loans whose full volume enters the economy for the first time. This category does not include loan consolidations or loan refinancing. It is divided into three categories:
- Purchase of real estate
- Property construction - including property renovation
- Other new arrangements - only new loans that are in no way related to the purchase or construction of the property, e.g. so-called American mortgages, settlement of a JVM, repayment of the purchase price, settlement of an inheritance share, settlement of a cooperative share, etc.
2. Refinanced loans from another financial institution
These are loans that have been originated by refinancing one or more loans from a financial institution other than the reporting one. Irrespective of the amount refinanced and regardless of the amount of any increase, the total amount of the newly originated loan is reported in this category.
3. Loans increased or internally refinanced
These are loans that were already part of the reporting entity's portfolio in the previous reporting period and have undergone one of the following changes during the reporting period:
- an increase in the agreed amount
- changes such that the original loan has been refinanced/converted into a new loan within the reporting entity. This is a genuinely new contract and not, for example, just a new arrangement in the context of a refixation of an existing contract. Therefore, the volume of such loans in the CBA statistics is lower than 'other new arrangements' in the Czech National Bank statistics.
The following banks and building societies provide data for the CBA Hypomonitor: Air Bank, Banka Creditas, Česká spořitelna, ČSOB, ČSOB Stavební spořitelna, Fio banka, Hypoteční banka, Komerční banka, mBank, Modrá pyramida, MONETA Money Bank, MONETA Stavební spořitelna, Oberbank, Partners Banka, Raiffeisen stavební spořitelna, Raiffeisenbank, Stavební spořitelna České spořitelna, UniCredit Bank.