Mortgage Loan for Foreigners in Poland

The moment of truth has arrived—you’ve decided to buy an apartment in Poland with the help of a mortgage. Securing a mortgage allows you to finance part or even the entirety of your property purchase. But how do you choose the right one? The best mortgage is the one that fits your personal needs and financial situation.

While some borrowers in Poland prioritise the ability to make early repayments without penalties or low bank margins, everyone shares the common goal of keeping the loan burden manageable within their household budget.

Can Foreigners Get a Mortgage in Poland?

Yes, foreigners can get a mortgage in Poland, but the process involves meeting specific criteria and providing additional documentation. Polish banks are open to working with foreign buyers but assess their applications with added scrutiny. One of the first requirements is proving the legal right to stay in Poland, which is typically done by presenting a valid residence card.

Foreigners may also face stricter creditworthiness assessments, with higher safety buffers applied to future installments. Having a local mortgage broker familiar with the home loan process for foreigners can make the experience smoother and more efficient.

Step 1: Calculating Your Creditworthiness

The first step in applying for a home loan in Poland is determining your creditworthiness—the maximum amount a bank can lend you based on your income, expenses, and other obligations.

Understanding your home loan creditworthiness in Poland helps narrow down your property search to a suitable price range and clarify the required down payment (or if a no-down-payment option is viable). It also highlights whether existing credit obligations might impact your application.

Mortgage Loan in the Secondary Market

When buying an apartment on the secondary market with a mortgage, the process involves fewer documents compared to purchasing under construction. Banks require:

A preliminary purchase agreement, including the land and mortgage register number.
Cost estimates if applying for additional renovation funds.

Remember: A 2% PCC (Civil Law Transactions Tax) applies to secondary market purchases, paid at the notary during the ownership transfer.

Mortgage Loan for Construction from Developer

Buying an apartment under construction comes with different requirements, including documentation from the developer:

Preliminary agreements outlining property details and construction plans.
A final building or occupancy permit.
Land and building record extracts.
Cost estimates for additional finishing funds.

Unlike secondary market purchases, primary market transactions are exempt from PCC tax.

Mortgage Payment Structure

Payment structures differ based on whether the property is under construction or already built. For under-construction apartments, banks disburse funds in tranches corresponding to construction stages. During this period, borrowers pay interest only, with capital repayment starting after the final tranche. This increases the total cost of the loan.

Mortgage Loan Calculator

A mortgage calculator in Poland is an essential tool for understanding installment amounts for different loan scenarios. It compares fixed and variable interest rates and calculates the effect of additional products, such as insurance. You will find many different calculators on the Internet; however, if you want to create your own personalised ranking of mortgage loans based on current bank offers, the Credit Space calculator provides you with that opportunity.

Remember that the calculator will not determine your creditworthiness; it will only calculate the amount of the installments. To accurately assess your creditworthiness, a consultant will contact you.

Conditions for Obtaining a Mortgage

To secure a mortgage, borrowers must meet specific criteria:

Sufficient creditworthiness.
Bank-accepted income types.
Stable income over a specified period or business operation.
Positive credit history in the Credit Information Bureau (BIK).
Reasonable debt-to-income ratio.
Compliance with age requirements set by banks.
Meeting banks’ right-to-stay requirements.

These factors play a crucial role in a bank’s decision to grant a mortgage for a foreigner in Poland.

How to Choose the Best Mortgage?

Choosing the best mortgage in Poland involves careful analysis of multiple offers:

Check for hidden fees.
Compare bank margins, which remain fixed throughout the loan term.
Evaluate commission fees and additional product costs.
Review the RRSO (Real Annual Percentage Rate) to understand total loan costs.

Mortgage experts can assist in navigating these factors to find the most suitable option.

Why Work with a Mortgage Broker in Poland?

A mortgage advisor in Poland can simplify the application process, from accurately calculating creditworthiness to submitting applications to the most favourable banks. They handle documentation, ensure compliance with all requirements, and provide full support—all free of charge.

Mortgage professionals also offer valuable advice for improving creditworthiness if needed. Partnering with a mortgage broker makes navigating Poland’s mortgage landscape much easier, especially for foreign clients unfamiliar with the local system.

Conclusion

Securing a mortgage loan in Poland, whether you’re a local or a foreigner, is achievable with the right preparation and expert guidance. Understanding the requirements and options available ensures you can confidently pursue your dream of owning property in Poland without unnecessary stress.