hypotéku

Hypotéka is a long-term loan secured by real estate, used to finance the purchase, construction, or substantial renovation of a dwelling. The borrower pledges the property as collateral, and a down payment is commonly required. The loan is usually repaid in regular installments over a period that commonly ranges from 10 to 30 years.

Terms and conditions vary by lender but often include a choice between fixed or variable interest rates. Some mortgages combine both, with a fixed rate for an initial period and a subsequent variable rate. The loan-to-value ratio (LTV) typically reaches up to 80–90% depending on the borrower's creditworthiness and the lender's policy. Lenders require documentation of income, employment, and credit history, as well as an appraisal of the property. The mortgage is secured by a lien or mortgage on the property and is registered in the land registry.

Process and costs: Obtaining a hypotéka generally involves pre-approval, formal application, underwriting, property appraisal, and signing of the loan agreement. Funds are disbursed to the seller or developer, and the borrower makes regular payments that cover principal and interest; additional costs may include arrangement fees, appraisal, notary, and insurance premiums (home and life insurance in some cases).

Types: Common variants include mortgages with a fixed rate for a set period, those with a variable rate, and mixed options. Some products may offer initial interest-only periods or special conditions for first-time buyers.

Risks and protections: The main risk is the obligation to repay the loan, which can increase with higher interest rates or changes in income. Early repayment penalties may apply. Consumer protection rules require clear disclosure of costs and total credit costs, helping borrowers compare offers.