Poland Mortgage Direct recommends that you arrange pre-approval for a mortgage (a loan promise) before arriving in Poland. Many investors make the mistake of trying to arrange finance after they have found a suitable property, however, they often lose out on their desired purchase because of the time it takes to get the loan promise through. The banks we deal with will give you pre-approval for a loan. This can be achieved before you come to Poland, so that when you arrive, you can concentrate on looking for the right property, secure in the knowledge that if you find it, you are in a position to move quickly with funding in place. It should be noted, however, that the bank will need to conduct their own valuation of the property you wish to buy, so any shortfall between the sale price and the valuation will need to be made up by the borrower.
After receipt of a completed application form for an individual with employment (salary) details, the process of receiving pre-approval for a mortgage with a Polish lender should take approximately 3-5 working days. Pre-approval for self-employed (or limited company employed) individuals will take longer, approximately 10 working days.
As a general guide, you will need to organize the following documentation as part of the loan application process:
- Complete Bank’s Application Form (in Polish or English)
- Provide Verification of employment / confirmation of salary details (e.g. copies of pay slips for 6 months and/or most recent annual tax return). If you are self-employed, see below for documentation required.
- Provide a statement of Assets and Liabilities.
- Provide a certified copy of your passport.
- Provide Copies of personal main bank account statements for the past 6 months.
- Provide a credit report (or if unobtainable, opinion from the bank).
After the agreement has been reached, and before the disbursement of the loan:
- Bank account to be opened with lender.
- In the case of buying on the secondary market: a valuation of the property you are planning to purchase, carried out by a recognized professional valuer (together with an opinion of the potential rental income in case of application for a ‘buy to let’ mortgage.
- A notarial deed must be obtained: confirmation that you, the purchaser, can buy and get unencumbered legal title to the property. If you are buying a new property, you will need a copy of the development / builders certificate.
- Insurance on the property assigned to the bank.
- Bridging insurance to protect the purchase until the applicant’s name has been entered into the Land and Mortgage Registry.
If you are self employed (or have a limited company), you will need to provide the following documentation:
- A full explanation of the type of business and copies of the last two year’s financial statements, signed by a qualified accountant.
- A letter from accountant stating that the last three years tax paid and up-to-date, level of income for the same period and information about your ability to pay the mortgage loan.
- Statement of profits and losses and balance from last and current year.
- Registration documents.
- Business account bank statements for the last six months.
Figures and information provided on this website are meant purely as an indicator of the loan products available through our affiliated mortgage lenders. Specific questions, such as those regarding commission, redemption penalties and paperwork requirements, should be aimed directly at the mortgage lenders themselves.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The value of your loan repayments under a foreign currency mortgage can fluctuate in value if your income is not paid in the same currency.