GE Money CZ - Mortgages - Mortgage Details and Conditions

Details and Condition

Live in Your Own Place

GE Money Bank mortgages are designed for financing, or investing into, real properties designated for housing purposes.

Mortgages can be used for:

Purchasing an apartment (even co-op owned), a family house, a summer home or cottage, or a building lot
Renovation, construction, or additions – when you draw a loan, you do not need to present us with invoices; we will send the money directly to your account
Settlement of a co-ownership share in a real property (joint marital property, inheritance, etc.)
Refinancing / paying down formerly provided housing loans
Reimbursement of investments into real property, going back up to 3 years
A combination of the purposes listed above

Advantages of the Upside-down Mortgage

You have money in your pocket before choosing a property
The Bank gives you an irrevocable contractual promise to provide you a mortgage, subject to the agreed contractual conditions
You get up to 6 months to find housing that will suit your needs, or to prepare renovations
You only document your income once, at the beginning

Advantages of HypoExpress

Fast processing, merely on the basis of your income
Executed at branch (a mortgage banker need not be present)
You do not need any document concerning the real property
Before we approve your HypoExpress, we do not burden you with any fees or any other costs, related for example to a property valuation, excerpt from the land registry, etc.
You have up to 6 months to select your property or to prepare the renovation of your property
If you already have a property selected, you will get a binding and irrevocable promise from the Bank, concerning the amount of the future mortgage
If you sign the mortgage agreement within one month, we guarantee you the interest rate applicable on the day you signed your HypoExpress agreement

Mortgage Applicants

A mortgage application can be submitted by a natural person of legal age/natural person who is a sole proprietor, or a foreigner with a permanent or temporary residence in the Czech Republic.

One mortgage application may be submitted by a maximum of four persons living in two households (example: you are applying for a mortgage, and your co-mortgagees are your wife, mother, and father).

Collateral

A mortgage is a long-term loan secured with a pledge on the financed real property or another real property in the Czech Republic (apartment, family house, a summer home or cottage, including the lots associated with those buildings, auxiliary buildings, if they constitute a functional unit with the real properties listed above, e.g., garage).

The collateral may comprise several real properties combined, and if the purpose of the mortgage is construction, you can use the unfinished building as collateral.

Mortgage Amount

The mortgage amount is based on the market price of the real property established by a contractual valuator, and the credit-worthiness of the client. Credit-worthiness (the client’s ability to pay) is calculated on the basis of a client’s demonstrable income and monthly expenses.

We will loan you a minimum of CZK 300,000 and a maximum of 80% of the market price of your property. There is no upper limit set on how much a mortgage can amount to.

Mortgage Approval and Draw-Down

We will asses your application within 3 business days of the submission of your documents.

You can draw your mortgage down in a lump sum or over time, depending on the purpose of the loan; the draw-down must be commenced within 12 months and completed within 24 months of the signing of the mortgage agreement:

One-time draw-down
Gradual draw-down

Repayment Period and Interest Rate Guarantee

You will choose your mortgage repayment period yourself, from anywhere between 5 and 30 years. You must not be aged over 70 on the final mortgage repayment date.

You can lock the interest rate in, contractually, for 1, 3, 5, and 10 years.

Mortgage Repayment

Your mortgage is repaid by a regular direct debit from a current account with GE Money. You choose the payment day.

You only start repaying your mortgage once you have fully drawn the mortgage down or once the Bank receives a written request from you to stop the draw-down. Until then, you pay interest to the Bank on the actually drawn amount.

The monthly installment amount is annuity-based and includes both the principal and interest.

Advantageous Insurance

We have also prepared advantageous real property insurance with our mortgages, as well as insurance of your ability to repay.

Property insurance is provided by our contractual partner Generali Pojišťovna a.s.

The insurance of your ability to repay the mortgage in the event of unexpected events in your life, e.g., work disability or loss of employment, is provided by our contractual partner POJIŠŤOVNA CARDIF PRO VITA, a.s.

Furthermore, you will get a discount on your mortgage interest rate if you take out this insurance.

Apply for Mortgage

Leave us your contact information and our telephone banker will call you back at no cost to you and help you. Or you can find and contact our Personal Mortgage Bankers.

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