A mortgage without collateral or a guarantor: is it possible?

There is no such thing as a mortgage without pledging property. With a mortgage, the bank always registers a lien over the property you are buying, or over another property it accepts as collateral. A guarantor and a lien are two different things, though – a mortgage without a guarantor doesn’t mean nothing is pledged.

In everyday Slovak, the word ručenie is used for three different situations. Before you look for a “mortgage without security”, be clear which one you mean.

Three meanings of “security”

What is meant	Who or what provides security	What happens if you don’t repay
A lien (záložné právo) over property	The property you are buying	The bank may recover the debt from the pledged property
A guarantor (ručiteľ)	A person who has undertaken in writing to pay the debt	The bank may claim the debt from the guarantor
Another property as collateral	For example, your parents’ flat or house	The bank may recover the debt from that property

A lien: without one, it isn’t a mortgage

Under Section 151a of the Civil Code, a lien allows the bank to recover the debt from the collateral if it isn’t duly repaid. The property remains yours. A lien is not a transfer of ownership to the bank.

The bank needs collateral for the loan agreement and for drawdown. Slovenská sporiteľňa, for example, says you can apply for a mortgage even before you’ve chosen a property. You will still need one for the agreement. Such a pre-assessment is therefore not a mortgage without property.

The value of the collateral also determines how much you can borrow. Under the NBS decree, the value used is the lowest of three amounts: the purchase price, the expert valuation and the bank’s internal valuation. Until 31 December 2026, a loan can reach at most 90% of this value, but banks may only lend a limited volume above 80%. The rules change from 1 January 2027; see the 90% mortgage page for details.

A guarantor: a person, not a property

Under Section 546 of the Civil Code, a guarantor undertakes in writing to satisfy the bank’s claim if the borrower doesn’t. A guarantor is therefore liable with their own assets and income, not with a specific property.

With a mortgage, the main security is the property. A guarantor is often confused with a co-borrower, such as a spouse or partner, who repays the loan with you and whose income the bank takes into account. Whether the bank will want a guarantor, another person or additional collateral for your application is decided when it assesses it. We found no general rule that applies to all banks.

Another property as collateral

The loan doesn’t have to be secured only by the property you are buying. Tatra banka, for example, says that when financing construction, the loan can be drawn in one go if you pledge another property. Whether, and on what terms, a bank accepts someone else’s property – such as your parents’ flat – varies from bank to bank.

If your parents pledge their property, it’s important to know that:

• they put their property at risk. If you don’t repay, the bank may recover the debt from their flat or house,
• they don’t automatically become guarantors. Pledging property and giving a written guarantee are different obligations. What matters is exactly what they sign,
• the property will be encumbered until the lien is released. Selling it or pledging it again will have to be arranged with the bank.

Note: before signing, ask the bank to explain which documents each person signs and in what role – borrower, co-borrower, guarantor or pledgor. If anything is unclear, consult a lawyer or notary.

When you can borrow for housing without property as security

Loans without a lien on property exist, but they are not mortgages. They are consumer loans or building-society loans. They are better suited to smaller amounts, such as a renovation, than to buying a whole flat or house. Examples according to the providers’ websites as of 19 October 2026:

Product	Published parameters	Limits
Tatra banka – Bezúčelový úver (unsecured loan)	€500–€40,000, term of 12–96 months, no co-borrower or guarantor, fixed rate from 6.49%	The bank sets the rate and approval individually
Slovenská sporiteľňa – Spotrebný úver pre budúcnosť	Up to €28,000, term of up to 10 years	Tied to support for home renovation; not an unrestricted loan
Prvá stavebná sporiteľňa – modernisation loan without a property lien	Up to €50,000 in the modernisation section, up to €60,000 in the FAQ	The site shows two different ceilings; check the current terms

For the same amount, a shorter term means a higher monthly payment. So compare total costs, not just the rate. You can work out the payment for different amounts and terms with the mortgage calculator. The income-based calculation shows how much a bank may lend you based on your income.

What to check before looking for a loan without security

1. Be clear whether you want to avoid a guarantor, avoid pledging property, or are short of your own funds.
2. If you are short of your own funds, ask the bank whether it would accept another property as collateral and how that would affect the loan amount.
3. If a family member is to help you, agree in advance in what role they will sign the agreement and what risk they take on.
4. If you are considering an unsecured loan, compare the payment and total cost with a mortgage for the same amount. See mortgage requirements for the general conditions.