Mortgage loan for a foreigner – guidebook

July 26, 2018 A foreigner who lives in Poland may receive a mortgage for an apartment in this country. However, it must meet certain conditions, including have a document confirming his permanent residence in Poland. Acquisition of real estate by foreigners is nothing new. Ukrainians are the largest group of foreign customers in Polish banks. 

Mortgage loan for a foreigner. Who can take a loan for an apartment?

Mortgage loan for a foreigner. Who can take a loan for an apartment?

Mortgage is a financial product popular in Poland. Poles are eager to take out a loan for an apartment, because many people cannot afford to pay thousands of investments in cash. The mortgage is taken for a long period (typically 15-30 years) and repaid in monthly installments. Their amount is determined by the bank based on the agreement with the client and his creditworthiness.

Who can get a mortgage in Poland?

  • single people with adequate creditworthiness (recognized by the bank),
  • couples in informal relationships with adequate creditworthiness,
  • marriages with adequate creditworthiness,
  • foreigners (after meeting the appropriate conditions).

It should be emphasized that most banks treat a customer who is a foreigner exactly the same as a Polish citizen. A mortgage for a foreigner does not involve, for example, higher fees for the obligation, because someone does not have a Polish passport. Of course, additional requirements appear, but they are fully understood.

Mortgage loan for a foreigner – bank requirements

Mortgage loan for a foreigner - bank requirements

Usually, banks require very similar conditions to take a loan.
What conditions must a foreigner meet to get a mortgage in Poland?

    • He must present an income certificate and documents confirming his creditworthiness – e.g. information from the foreign equivalent of the Polish Credit Information Bureau,
    • he must prove his relationship with Poland – it may be a marriage certificate with a Polish woman, permanent residence card, permanent residence permit, work permit in Poland,
    • must have a passport,
    • must earn in Polish currency.

The conditions listed above are the most common bank requirements. However, please note that each bank may require additional documents. For example, Alior Bank requires foreigners still a full ROR history from another bank for the last 3 months or pay slips, translated into Polish by a sworn translator. It happens that some institutions require twice their own contribution from foreigners than from Poles.

This is to better secure the mortgage. Each bank, after sending a credit inquiry by a potential customer from outside Poland, informs which documents it requires exactly – the list above is an approximate requirement.

Loan for a flat for a foreigner – exceptions in the requirements of banks

Sometimes foreigners need a special permit issued by the relevant home affairs minister. This happens when a foreigner wants to buy a plot or a house. An ordinary apartment does not require such documents.

You do not need to have this permission if:

      • living in Poland for more than 5 years (calculated from the moment of granting the right to permanent residence or obtaining permission to stay as a long-term EU resident),
      • married to a Pole (and living in Poland, but at least two years from the time the permanent residence permit was granted or residence permit was granted as a long-term EU resident).

Marriage with a Polish woman makes it much easier for foreigners to take out a mortgage in Poland. However, some banks do not grant a mortgage to foreigners at all or do so only in specific cases. Institutions such as Eurobank will not grant an apartment loan to a person who is not an EU citizen.

If the potential borrower is from outside the European Union, the bank may require permission to buy a plot or property of a Polish official of the Ministry of the Interior.

Loan for a flat and loan for a foreigner

Loan for a flat and loan for a foreigner

What financial products can a foreigner use in Poland? It is already known that mortgage is not a problem. The situation is different with loans granted by non-bank companies. Polish citizenship is required to receive them.

Often you also need to have an active account in a Polish bank. While this is not a problem (more and more foreigners use the services of Polish banks – domestic banks already have 600,000 accounts for foreigners), the condition of Polish citizenship is the biggest obstacle in obtaining a loan by a foreigner. However, if he receives Polish citizenship – there should be no problem with that.

There are more and more foreigners living in Poland. According to data from the Office for Foreigners, the number of permanent residence permits issued is increasing. In 2017, the permit received 8.9 thousand people, and in the first quarter of 2018 2.2 thousand people. Over 50 thousand applications for permanent or temporary stay have been submitted. people. Most applications come from Ukrainian citizens, but citizens of Georgia, Belarus, India and Vietnam also often apply for permission.

How to take a mortgage? Buying an apartment in a few steps

How to take a mortgage? Buying an apartment in a few steps

A mortgage for a foreigner, apart from the additional requirements (described earlier), has the same procedure as a loan taken by a Polish citizen. First of all, the candidate for the borrower must show that he has a stable income.

What sources of income for mortgage do banks recognize?

      • contract of employment,
      • mandate agreement (only in some banks),
      • contract for specific work (only in some banks),
      • running your own business (only in some banks).

Loan for an apartment – how to act?

      • Check your credit standing (preferably with a financial advisor, not online),
      • find the right apartment / house,
      • collect own contribution (this is an action that usually needs to be taken much earlier, because own contribution is several dozen thousand zlotys),
      • find the right loan offer (including APRC, repayment length, installments, etc.),
      • after choosing the bank and offer and making sure that the bank wants to grant a loan (pending a credit decision) – provide all documents required by the bank,
      • wait for the loan to be finalized,
      • after receiving the money – buy an apartment.

The situation becomes more complicated when someone already owns a flat with a loan. However, nothing is impossible. A flat with a mortgage can be sold. If the loan is taken for a divorced marriage, nothing is lost. Credit and divorce are a matter that can be solved. However, this is associated with many formalities. Similarly, like a mortgage for a foreigner.