Mortgage loan – you don’t know if it is possible for a foreigner? If so, on what terms? Are you interested in having your own apartment in Poland? And are you thinking about financing such a purchase with a mortgage loan?
What is worth remembering and what is worth paying attention to?
Today, most banks grant mortgages to foreigners, but they must meet certain requirements. And most of these conditions apply to foreigners who are not EU citizens or citizens of one of the countries of the European Economic Area and the Swiss Confederation, as well as Norway, Iceland and Lichtenstein.
A foreigner can use the funds obtained from a mortgage loan to buy a flat, build a house or buy a building plot. Importantly, the loan terms do not change depending on the country of origin.
What are the requirements for obtaining a mortgage loan for a foreigner?
The conditions for each person applying for a loan are:
– showing creditworthiness
– issuing documents confirming identity
– issuing documents confirming the income earned and its source.
In the case of an Employment Contract, a PIT-37 form and a bank statement with recognition of remuneration will be required; in the case of running a business activity, the list of required documents may be slightly longer.
– having your own contribution, usually in the amount of 20% of the value of the apartment.
*for example, if the value of the apartment is PLN 600,000, then the 20% own contribution is PLN 120,000.
Additional documents required from a foreigner:
– PESEL
– temporary or permanent residence card (requirements regarding the type of card and the validity period on the day of application may vary depending on the bank)
– registration (to confirm your stay in Poland)
In some cases, a special permit issued by the Minister of Internal Affairs and Administration may be required, but more on that in a separate article.
What to pay attention to when applying for a loan?
What should we remember if we want to familiarize ourselves with mortgage loan offers?
The first thing that will probably come to mind are the bank’s requirements regarding documents or creditworthiness, interest rates and parameters of the loan agreement. Let’s not forget about the aforementioned own contribution.
What else should we pay attention to?
Although the interest rate is one of the basic things, it is also worth paying attention to whether the bank offers variable or fixed interest rates and, in the case of the latter, for what period.
– duration of the obligation, because depending on the bank, there may be a different maximum obligation period or upper age limit for the borrower;
– insurance amount and its conditions;
– the amount of commission charged by the bank for granting a loan;
– APR (an indicator that includes the sum of loan-related costs);
– type and amount of installments.
The procedure for applying for a loan for a foreigner may be more complicated and time-consuming compared to Polish citizens, but it is not impossible. However, to simplify the process as much as possible, it is worth seeking help from a financial advisor. A specialist will be able to compare available offers from different banks and choose the most appropriate one. The bank usually has up to 21 days to consider the application, but in the case of missing documents or a missing signature, the period is counted again from the day the missing documents are filled, and this is another reason why it is worth using the help of an advisor. The support of a specialist familiar with the current formal requirements will help avoid extending the application due to missing documents.
We will be happy to advise you on financing your dream apartment, as well as on searching for it after getting to know the requirements (i.e. square footage, floor, city/district, etc.).
