In the first half of 2008 amount of people wishing to get hypothecs reduced. Analytics say that last year lots of people wished to take loans as in 2008 VAT rate increased from 5 to 9%. In 2007 Czech banks gave 142 Milliard CZK as hypothecs, and that's almost 40% more than in 2006.

Foreign citizens can also get hypothecs and loans from banks. Usually banks demand a foreigner to provide a newly established company that will be totally under particular foreigner's control (100% share holder) and a business plan under which a profit from usage of property for which hypothecs is taken, will be enough for monthly payments to the bank. As a rule professional advisors prepare such projects and a foreigner pays for the help.

Each bank wants to attract clients and provides bonuses, benefits and discounts. Some banks provide opportunity to get a hypothecs for bigger amount of money than cost of property ( up to 150%), others give chance to pay remaining amounts at the end of the 5^th year. A client can choose for how many years to pay hypothecs, minimum time frame is 5 years for flats and houses, maximum - 40 years. Bank's interest for providing hypothecs depends upon amount of money and time period and varies around 5% annually.

Some benefits while getting hypothecs

Bawag Bank	Opportunity to get hypothecs for buying property, constructions and reconstructions
Ceska Sporitelna	No payments  for paperwork while getting hypothecs, 3 months brake time from the moment of signing hypothecs papers
CSOB	Discount of 0.15% to clients who have bank accounts in CSOB, judging about cost of property using photos.
Volksbank	50% discount for getting hypothecs through internet
UniCredit Bank	Paperwork and bank accounts are for free, 100% hypothecs for 40 years.

All payments for usage of hypothecs and loans are viewed as company's expenses and thus reduce the tax base of foreigner's company.

Expenses for paying hypothecs and for renting a flat are same, thus its more preferable to pay hypo and get own flat in some 20 years then paying to landlords.