IQ Rental Mortgage is a loan for acquiring property for rental or recreational purposes, where up to 80 % of the value of the mortgaged property can be financed, and the repayment term can be as long as 30 years!
With IQ Rental Mortgage, you can invest into a property used for rental purposes even if you do not have sufficient funds for paying the purchase price. Alternatively, if you have invested into a rental property in the past and lack funds for a current opportunity to expand your real estate portfolio, you need not worry. With IQ Rental Mortgage is your solution!
Advantages of a LBBW Bank IQ Rental Mortgage
- Long-term loan repayment periods up to 30 years!
- Financing for up to 80 % of the property collateral value
- Low interest rates fixed for up to 20 years
- Low processing fees
- Possibility to finance a commercial real estate
IQ Rental Mortgage Parameters
| Maximum LTV * | 80 % |
| Type of interest rate | Fixed |
| Floating | |
| Minimum loan value | CZK 250,000 |
| Maximum loan value | For fixed interest rate CZK 12.500.000,- |
| For floating interest rate CZK 10.000.000,- |
|
| Maximum loan value | CZK 12,500,000 |
| Minimum repayment term | 4 years |
| Maximum repayment term | 30 years |
| Interest rate fixing period | 1, 2, 3, 4, 5, 10, 15, and 20 years |
| Drawdown | Lump sum or gradual |
| Repayment | In case of fixed interest rate, the loan is repaid with annuity installments |
| In case of floating interest rate, the loan is repaid with linearly installments |
|
| Current account | LBBW Bank CZ a.s. current account required ** |
| Required insurance | Insurance of the mortgaged property |
* LTV = the ratio of the loan and the property collateral value.
** Opening and closing the current account is free of charge!
Is a mortgage loan for you?
A mortgage loan is available to:
- Czech citizens
- Slovak citizens
- other foreigners with permanent or temporary residence in the Czech Republic
Note:
Up to four applicants from two households may apply for a loan jointly.
Examples of using an IQ Rental Mortgage
- Purchase of a family house or other real estate used for rental purposes
- Reconstruction and refinement works on a property used for rental purposes
- Refinancing of loans that were provided by corporations and invested in real estate used for rental purposes
- Refinancing of an investment into rental housing or loans from legal entities used for rental purposes
- To purchase real estate in auction (with another real estate as a collateral)
The loan may be used for purchasing or refinancing a property intended for rental purposes.
Collateral
The loan must be secured by a lien on a property located in the Czech Republic. The mortgaged property does not have to be owned by the applicant for IQ Rental Mortgage.
Requirements for obtaining a mortgage loan
- Minimum age 18 years
- Minimum income
- 10.000 CZK in case of 1 applicant
- 15.000 CZK in case of 2 or more applicants (altogether out of which a minimum of 10.000 CZK from the main applicant)
- Current employment must last at least 3 months (self-employed persons must have been conducting business for at least two years)
- Verifiable contact telephone number for the applicant's employer
- Contact telephone number for the applicant
Documents required for processing a mortgage application
- Completed application
- One identification document
- Income statement
- employees must provide a - statement confirming their salary
- self-employed persons must provide a tax return for the last taxation period
- documents pertaining to the mortgaged property / purpose of the loan
Note:
If the property is co-owned by spouses, a mortgage application must be made jointly by both spouses.
Additional documents may be required in the case of non-standard income, loan purpose, or collateral.
Additional information
- Documents pertaining to the mortgaged property / purpose of the loan
- List of fees
- Current interest rates - a table of interest rates for Private and Personal Banking (Page 6)
For detailed information on mortgage loans visit any LBBW Bank branch.
