Recently, Poland has become a place of interest for an increasing number of foreigners. Some come in search of a better life, others are looking for opportunities for investment. New businesses are opening, which also need workers, including people from abroad.
Some decide to stay in Poland for a longer period of time or permanently, which is linked to the desire to own a home there.
Such events have led to increased interest in financing options for real estate purchases, primarily mortgages.
However, is it possible for a foreigner to obtain a mortgage in Poland? Do you know what the requirements are for obtaining a mortgage as a foreigner? Do you want to know what to pay attention to when applying for a loan? What are the possibilities and what potential difficulties a foreigner may encounter when applying for a mortgage loan?
You will read about it below.
Who is a foreigner?
The Polish law defines a foreigner as:
- a natural person who does not have Polish citizenship;
- a legal person with its headquarters abroad;
- an unincorporated company with its headquarters abroad and established in accordance with the laws of a foreign country;
- a legal person or an unincorporated commercial company with its headquarters in Poland, controlled by foreigners.
In this article we will talk about mortgages for a natural person – citizens of third countries, that is, citizens of countries other than the countries of the European Economic Area and the Swiss Confederation.
Is it possible to get a mortgage loan as a foreigner in Poland?
Until some time ago, it was almost impossible to get a loan for the purchase of an apartment as a person who did not have Polish citizenship. However, due to the changing market, more and more banks are offering such an opportunity to foreign clients living in Poland.
Yes, this involves additional conditions, but they are perfectly feasible, especially if someone intends to settle in Poland permanently.
The money obtained from the mortgage can be used by a foreigner for, among other things: building plots, construction of a house or purchase of an apartment. Importantly, the terms of the loans are the same regardless of the country of origin of the borrower.
What are the additional conditions for a foreigner to obtain a mortgage loan?
The most important conditions that must be met when applying for the mortgage loan are:
- creditworthiness;
- valid documents proving identity;
- documents confirming the source of income and its amount (e.g. PIT-37, bank statement of including salary receipts or other documents depending on the form of employment);
- down payment (10-20% of the value of the apartment, for example: if the value of the apartment is 500,000 PLN, 20% of the downpayment is PLN 100,000).
Other documents required from a foreigner:
- PESEL number;
- temporary or permanent residence card (requirements for the type of the card and expiration date may vary);
- resident registration address in Poland (to confirm residence in the country).
In some cases it may also be necessary to provide a special permit for the purchase of real estate granted by the Ministry of Internal Affairs and Administration.
What to pay attention to when applying for a loan?
If you are looking for the best loan offer yourself, you need to keep in mind many factors. You will find the most important ones below.
The most important points are: the bank’s requirements to have the necessary documents, the downpayment or creditworthiness, as well as the interest rate offered or other parameters of the loan agreement (such as the duration; the type of interest rate – fixed or variable; the type and amount of installments – increasing or decreasing ones; the commission charged by the bank; the amount of the APR).
Applying for a mortgage as foreigners is not impossible, although it is more time-consuming and complicated than as Polish citizens. For many people, taking out a mortgage loan for an apartment is a huge commitment that must be approached with the necessary care. To make the process easier, it is worthwhile to enlist the help of an experienced financial advisor, who will select the best offer in a given situation among those available on the market.
The article was written with the help of an expert of many years of experience gained by working in a bank in providing loans, and currently working with magfin.pl. MAGFIN is a service and consulting company operating in Poland since 2011. Our clients can count on support in the field of counseling, legalization of residence and work of foreigners in Poland, as well as both intermediation in the purchase and rental of real estate and credit brokerage.
If you would like to consult with our expert, please visit our website. Also feel free to contact us directly at +48 531 510 005. 24.10.2024, Yuliia V.
