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100% LTV Mortgage on a purchase of an apartment in Krakow, Poland

kokolon 5 | 7
8 Feb 2017 #1

I wonder if someone can answer.

I have found a flat to buy in Krakow and visited my bank. To keep my financial state, I don't want to spend my saving a lot. Therefore, I asked my bank if LTV 100% mortgage was possible. They said no and paying 20% deposit is an obligation on customers. Is that true? Although I will contact some mortgage dealers/brokers, is it worth trying to have 100% LTV mortgage in Poland in terms of interest and margin? By the way, I am a foreigner who has been living here for 2.5 years.

I desperately hope someone can give me advice.

cms 9 | 1,255
8 Feb 2017 #2
There is a recommendation by the Polish banking supervisor that the maximum LTV can be 80%, in some exceptional circumstances 90%. It is not strictly a law, but all of the main banks follow that, and your chances of getting 100% LTV are basically zero. It's nothing to do with you being a foreigner either, a Polish person would have the same difficulty
It's a sensible law, Poland's currency is quite weak and I think it's essential that the banking system is stable, and that there is no reckless lending to consumers.
smurf 39 | 1,979
9 Feb 2017 #3
Is that true?

yep, pretty much exactly what cms says.

What some people do it get the 80% mortgage and a normal loan for the other 20%, but you'll be crucified with interest paying two loans back.

you won't get a 100% mortgage though
8 Mar 2017 #4
you should be able to get 90% while some banks will do you a separate loan for the deposit, which is paid off first usually with a bigger monthly payment. Bottom line is it can be done, you need to shop around, but you have to be able to afford it otherwise no one will touch you.

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