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Polish Mortgage for a Foreigner


paddy123  
30 Jul 2009 /  #1
I've just had a quote for a Polish mortgage with an interest rate of 7%. I've seen that the Polish Central Bank has set rates at 3.5%. 7% therefore seems pretty high to me.

From what what I've seen, mortgages for foreigners are hard to come by at the moment, but does any one have any idea what an average mortgage interest rate in Poland is at the moment?
SeanBM 35 | 5,808  
30 Jul 2009 /  #2
Hello Paddy123,

And welcome to the Polish forums.

I am not a mortgage broker.

with an interest rate of 7%.

In which currency?.
It sounds like it is in Zloty, try getting one in Swis Frank for a comparison.

Currencies fluctuate and my crystal ball is fogged up.
OP paddy123  
30 Jul 2009 /  #3
Hi, SeanBM, thanks for the welcome.

The currency is Zloty, I will try to get a quote in another currency. My choices seem quite limited at the moment as banks seem less than willing to lend to foreigners.
SeanBM 35 | 5,808  
30 Jul 2009 /  #4
I am Irish and live in Poland.
I first tried to get a mortgage here about 8 years ago, it was far from easy then too.

It is not just foreigners that find it difficult to get mortgages.
Some say, this is one of the contributing factors to Poland's relative stability during these difficult financial times.

Shop around, the Zloty is re-gaining some of it's strength now.
It fell about 20% against the Euro in the last year but probably because it was over valued.

Again, I am not a mortgage broker and my crystal ball needs new batteries.
It always depends on who you read.

Just out of curiosity, what do you want the mortgage for?.
OP paddy123  
30 Jul 2009 /  #5
I'm looking to invest in an apartment in Warsaw, Krakow, or Poznan, haven't decided which city yet. I know Poland fairly well as I have a lot of family there and have stayed in the country for long periods of time in the past.

I may end up living in the apartment in the future.

I'm from the UK and my Grandfather was Polish so I might have Polish citizenship which I would need to confirm, which might help me with getting the mortgage.
SeanBM 35 | 5,808  
30 Jul 2009 /  #6
I might have Polish citizenship

I think that might help.
Of course it is more about earnings or assets but there seem to be more options available to Polish people when getting a mortgage.

Warsaw, Krakow, or Poznan, haven't decided which city yet.

It'll be fun checking them all out :)

I may end up living in the apartment in the future.

I recommend it as a long term investment and if you are considering to live in it, all the better.

Best of luck mortgage hunting, let us know if you have any further questions and I will try to recharge the batteris for my crystal ball.
magdalenaG 2 | 67  
30 Jul 2009 /  #7
I've just had a quote for a Polish mortgage with an interest rate of 7%. I've seen that the Polish Central Bank has set rates at 3.5%.

The WIBOR 3 month ( which most banks use ) is 4.16% today , which therefore means that the bank is taking a 2.84% margin ( this is not excessive for an investment mortgage ) . Liquidity & cost of funds is the main problem in the market at the minute & my advice to you would be that if you have an offer of 7% on the table , then you should take it ( before the margins increase again , which they are very likely to do in the short term) .

As for mortgages in CHF/Euro/GBP/USD... as far as I know they are not available from any lenders at the moment , the only game in town is PLN for now.

My crystal ball is working well by the way... things are only going to get worse!
OP paddy123  
30 Jul 2009 /  #8
Thanks for the advice magdalenaG , I have been told I could take out the loan in Euros or Pounds but the interest rate would be higher which probably isn't worth it.

I'm going to stick with PLN as I think it's the safer bet because my rental income will be in PLN.

I'm going to have to get myself a crystal ball, it would be useful in the property market at the moment!
SeanBM 35 | 5,808  
30 Jul 2009 /  #9
As for mortgages in CHF/Euro/GBP/USD... as far as I know they are not available from any lenders at the moment , the only game in town is PLN for now.

I agree, I just wanted to show him where the discrepancy was.

take it ( before the margins increase again , which they are very likely to do in the short term) .

Why do you think they will increase again and how short is short term?.

My crystal ball is working well by the way... things are only going to get worse!

How much worse? and is there any chance of a recovery, if so when?.
magdalenaG 2 | 67  
30 Jul 2009 /  #10
Margins will likely increase to c. 5% with all lenders ( due to current liquidity/funding issues )
Banks are also currently paying 6%-7% for deposit money versus a 2% margin on average that they are taking on borrowings. This cannot be sustained . ( personal loans @ 10% are profitable, mortgages @ 6% aren't )

Therefore , margins need to increase & you are also likely to see arrangement fees in the region of 4% soon.

This will all lead to reduced repayment capacity for local borrowers so less people will qualify for mortgages , until a) there is significant wage growth b) banks start lending again in FX ( 3mth base rate in Euro is 0.87% , CHF 0.36% compared to 4.17% in PLN ) or c) Banks lending criteria ease & they increase the LTV available back to realistic levels , ie 90% for owner occupier.

My crystal balls says give it 12 months ..at least.
daniel.podpora  
30 Jul 2009 /  #11
halo

I would like to clarify a few things regarding mortgage in poland.

paddy123 Today, 11:00
you do not need to have citizenship. the bank take in to consideration where you earn.
EU plus UK - 80% LTV
US, Australia, Asia 50%80% LTV

if you work full time employment you can get 3,15%-3,7% in CHF with out any problem within 2-3 weeks, decision in principal is within 3 days; only bank account statement is required, no pay slips, no job contract, no p60, and so on,

just bank account statement and employer certificate on the bank form and you will get a loan without a problem for 80% LTV with fit out. also USD, EURO is available.

I do not recommend PLN at all. even if it 7%, it is still expensive compared to Euro or CHF

I would take also an advantage that euro/PLN rate is very high and I suggest Euro or CHF. and this is second for for currency loans

obtaining a loan for full time people is very easy but it is still problem to get a loan for a people working as self employed. loans are available but the rate are very high: 9,9% up to 11%.

if someone need advice please contact me.

regards
Daniel
Griff 17 | 67  
19 Aug 2009 /  #12
Merged: Which Bank To Take A Mortgage With (foreigner buying real estate in Poland)

Hi All, Anyone had good or bad experiences with bank when it comes to being a non-pole. I had a couple of paperwork issues in the past with small credits and would like some advice on which banks are good?

Regards
vndunne 43 | 279  
21 Aug 2009 /  #13
Hi Griff, I think the question should probably be...who has had the least hassle with a bank!!!
That being said, BZWBK do have a section that deal with non-poles if they want mortgages. The office is located in their branch in Marszawlska St.(probably spelt wrong) in Warsaw. If you need any more details, let me know.

Here is a link to the english version of their site. You can find information on mortgage there.

english.bzwbk.pl/11591
Wroclaw Boy  
21 Aug 2009 /  #14
BZWBK do have a section that deal with non-poles if they want mortgages.

Yeh Carl Coates, the Irish dude, they chrage 2% though. better off highering a translator. and beware of foreign currency mortgages.
munsterforever - | 5  
23 Aug 2009 /  #15
I'd gladly pay the 2% if I could get a loan approved..like getting blood out of a stone at the minute. I might try the Irish dude ( although he doesn't sound too Irish ?)
misskend  
23 Aug 2009 /  #16
Hes irish - was working in cork for a number of years, think he hails from the midlands. Nice guy, he won't mess you around or lead you down the garden path, he will tell you very quickly if you can or can't get a loan.

WBK are trying to get away from property they claim they are very over exposed and want to explore other avenues (they can't actually tell you what these other avenues are yet but its not property) however its Carls job to get loans for Irish individuals who want to buy here, not companies and hes still here so I presume they are still lending. However WBK is well feeling the strain of the mothership in Ireland and as we all Know AIB while take a while to get back on its feet and maybe they will be forced to sell WBK if they are going to get the Irish bail out.

Myself I have written off banking for 2009 and many of the banks are waiting to see what is going to happen and are not that fussed if they lend anything till the end of the year, they are checking what they have on their books and sorting the problems just in case things get worse. My own opinion is Poland will be fine and things will recover in time.

good luck with it!!

MKD

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