Mortgages

Poland Mortgage Direct provides you with the most up-to-date information concerning Polish home loans available to foreigners. We outline the general terms and conditions, provide examples of typical loans available and explain the application process.

General Guidelines

Loans are available to foreign investors for the purchase, construction, modernization and refinancing of Polish properties.

Loans can be denominated in a number of different currencies – currently loans are offered in Euro (EUR), US$ (USD), Zloty (PLN), Sterling (GBP) and Swiss Franks (CHF).

For variable/floating rates, the interest rate is based on a variable base rate equal to WIBOR 6M (PLN), EURIBOR 6M (EUR) or LIBOR 6M (CHF, USD, GBP) which is then increased by the Bank’s margin, which will depend on the period of the financing, loan currency and the Borrower’s down payment amount. See the Variable Rate Mortgage Examples page for current interest rates in the available currencies.

The typical maximum LTV is between 60-80% with loan duration up to 35 years, depending on your age. Your foreign income will be taken into consideration when determining your eligibility and the terms of the loan.

In addition, some lenders are offering ‘buy to let’ mortgages which will take into account prospective rental income from the mortgaged property – see the information below.

Typical Loan Features for Poland Home Loan Mortgages Available to Foreigners

Currency Options EUR, USD, PLN, GBP, CHF
Term of Loan From 4 up to 35 years
Repayment Method Only ‘Capital and Interest’ repayment mortgages. Interest-only mortgages are not available.
Minimum Down Payment Ranges between 20-40% (i.e. Loan to Value between 60% and up to 80%)
Loan Amount Minimum of 20 000 PLN, maximum will depend on individual circumstances
Interest Rates Fixed or floating/variable

General Information About Polish Home Loan Mortgages Available to Foreigners

Resident’s Card Not Required
Sanctioning Fee Between 1-2.5%
Foreign Incomes Are applicable. All loans need to be supported by proof of income.
Availability For the purpose of purchase, construction, modernisation and refinancing
Grace Period Short-term postponement of loan repayments granted with some loans
Polish Bank Account Required, though should be organised by lenders as part of the loan application
Loan/Bridging insurance Required in some cases until applicant’s name has been entered into the Land and Mortgage Registry
Property Insurance Required in some cases
Currency conversion For non-PLN loans, some banks charge a currency conversion fee

Polish ‘Buy to Let’ Mortgages for foreign investors

At present, Polish lenders will only take into account 50% of the projected rental income of the mortgaged property. This is because the private rental market in Poland is underdeveloped in comparison to Western Europe and the USA ? there simply isn’t a tradition of renting in Poland and Poles would prefer to buy their own residence. As a result, borrowers should not be expecting (or relying on) high rental income to repay Polish mortgage loans.

Typical features of a Polish ‘buy to let’ mortgage

Max term of loan Up to 25 years
Max loan to Value Up to 70% of the lenders valuation of the property
Currency options GBP, EUR, USD or PLN

DISCLAIMER
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.