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Mortgage loan for a foreigner in Poland

Due to the natural changes taking place in Polish society, more and more foreigners choose our beautiful country as their destination, or at least long-term permanent residence. Until recently, Poland was treated as a stopover route in the journey to the west by the citizens of Ukraine, Belarus, Russia and other smaller countries of Central and Eastern Europe. Currently, not only citizens of these countries want to stay longer, but also residents of countries such as Germany, the Netherlands, Spain and France. Therefore, housing needs arise, the desire to have your own "flat". Here is the problem of "Mortgage for a foreigner in Poland". How to do it, I heard that it is difficult, impossible, Polish friends did not get it, so what should I do? In today's article "Mortgage for a foreigner in Poland" you will learn:

which countries citizens can count on a mortgage in Poland,
do you need a permanent residence card to get a mortgage,
what documents you need to prepare to submit a loan application,
whether the purchase of real estate by a foreigner requires special permits.

Is a loan for a foreigner obtainable?

A mortgage for a foreigner is not as difficult as it may seem. As in the case of a loan for a Polish citizen, also for a citizen of another country should be well prepared for this operation. Of course, not all banks are interested in granting loans to people from outside Poland, and in many cases a narrower offer should be expected, but nothing difficult for those who want to. I know because I have implemented a lot of such financing for my clients.

What is the minimum required own contribution?

In terms of own contribution, there is no special difference whether a Polish citizen or a foreigner applies for a loan. Own contribution depends on the individual policy of each bank separately. The minimum requirement is 10% of the property value. It is used by approximately 2/3 of the banks operating on the market. The rest will require 20% of the property value. It should be remembered that the greater the own funds, the better the pricing conditions are to be obtained. This is due to the fact that a higher own contribution causes a lower risk for the bank. The lower the risk, the lower the price the bank can dictate for granting a loan.

Loan currency

As a rule, in Poland you can only get a loan in the currency in which you earn your income. Therefore, if your income is in PLN, you will have to take out a mortgage in the same currency. If your income is in EUR, USD and a few others, you have some options, although limited. Only two banks granting foreign currency loans remained on the Polish market - Alior, Pekao SA. At Millennium and BNP Paribas, you have a chance for a PLN loan if you join a loan with a person earning an income in PLN. Your accounting income will be lowered below the level of the person earning the PLN income. Thanks to this procedure, the income in PLN will be dominant and you will be able to get a mortgage.

A mortgage loan for a foreigner step by step

Obtaining a loan by a person from outside Poland is completely standard. Below is a step-by-step overview.

Finding and selecting real estate.
Checking the property for legal purposes.
Signing a preliminary contract.
Submitting applications to selected banks.
Obtaining a decision, negotiating and analyzing the final price conditions.
Signing a loan agreement.
Signing a notarial deed for the purchase of real estate.
Mortgage payment.

The origin of the future borrower

In many cases, the possibility of obtaining financing depends on the origin of the foreigner. European Union citizens earning an income in Poland must be treated like Polish citizens. This is due to the applicable European Union law. However, it is worse for the citizens of the rest of the world. Banks introduce additional restrictions here. Some of them extend the catalog of accepted citizens to include the Schengen area, the USA, Canada, Ukraine, Belarus etc. Citizens from other countries will face much bigger problems.

Right of residence

Holders of a Polish passport and PESEL number do not have any reasons to stress. Banks are obliged to treat them equally to Poles born in the country.

Some banks may, in particular, have reservations about citizens who have a temporary residence card. Banks may limit the possibility of granting a loan for a period no longer than the validity period of the card. However, there will also be a few banks that will grant a mortgage to such a foreigner for a year, two, five years ahead. Therefore, the temporary residence card is not a special problem, especially the permanent residence card should not cause many problems.

Permission to purchase real estate for a foreigner

Obtaining a mortgage for a foreigner does not require special official approvals. However, the purchase of real estate in Poland may require a foreigner to obtain a special permit from the Minister of the Interior and Administration. Such a permit is required depending on the type and location of the property. A foreigner does not have to apply for a permit if he / she wants an independent flat within the meaning of the Act of June 24, 1994 on the ownership of premises (Journal of Laws of 2000, No. 80, item 903, as amended). The only limiting factor is the location of the dwelling. It cannot be a border zone.

The level of knowledge of the Polish language

The purchase of real estate in Poland each time requires such a transaction with the participation of a notary. According to the law, a notarial deed may only be executed in Polish, due to the importance of the situation. The minimum acceptable level of knowledge of the language is the communicative level. The notary may judge that the proper execution of the act is not possible due to insufficient knowledge of the Polish language. Consequently, it may demand the presence of a sworn translator. The cost of the interpreter's presence must be covered by the person for whom the translation will be provided.

Country of earning income

A very important parameter is the place of income. Banks most willingly provide loans to persons employed or running a business in Poland who are ⇒ resident within the meaning of Polish law. If a foreigner earns income outside Poland, unfortunately, it is practically impossible to obtain a mortgage in Poland.

Remember that if you have any doubts, I am happy to offer you advice and assistance. Let's meet, you will find that my help in choosing the best mortgage can be invaluable.

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