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Mortgage for foreigner in Poland - experience anyone?

17 Aug 2017 #1
Hi all,

so we've found an apartment, the price is negotiated, and on paper we should be able to get the mortgage.

But, as i've recently discovered, Polish mortgage rules are the wrong way around - you do them AFTER you sign the contract.
Which means, if for some reason we dont get the mortgage arranged in time, or not at all, we will lose our down payment, which is quite a sizable amount.

Now, the real estate agent and the mortgage broker say there's not gonna be any problem, we "tick all boxes". Fine, but they are selling something, so i dont have the biggest amount of trust in it, since every piece of paperwork i've had to do since i arrived in Poland has taken way-way-way longer than i was initially told (Pesel number, car registration, the list goes on)

Is there any foreigner here with experience in getting a mortgage and buying real estate in Poland, that would care to share it with me?
Sparks11 - | 335
17 Aug 2017 #2
are you eu? which bank? ING wont loan a dime to americans. Mbank --never asked for a home mortgage but they are easy about all other loans. expect to wait months and even when your approved they might not release the money for a couple more months. if your wife is polish and has a decent job you should be fine.
OP Alexbrz
17 Aug 2017 #3
Im from the netherlands, mortgage broker does multiple (all) possibe banks, not just one. ING was in there, Citibank, and some others.

The mortgage will be on my name, as my girlfriend just moved to the city where i live, and hasnt gotten a permanent contract yet (not married, she works in the same company as i do now). Girlfriend is Polish, but as said, not married and no permanent contract. I do have a permanent contract, a high enough salary to go 100k pln above what im looking to loan, and paying a bit over 20% of the property value from own money.
17 Aug 2017 #4
the real estate agent and the mortgage broker say there's not gonna be any problem

So ask them to guarantee your deposit payment.
Sparks11 - | 335
17 Aug 2017 #5
i think youll be fine unless youre looking for some exhorbitant amount. eu+decent job+down payment, should fly even with those dutch bast***s 😊😊
OP Alexbrz
17 Aug 2017 #6
im looking for ~400K. So far the ING (a dutch bank nontheless!) has given me the biggest amount of trouble since coming to Poland.

Maybe i should go wearing my dutch-orange t-shirt for some better service.
17 Aug 2017 #7
As long as you are earning in Poland and have contract employment you should be ok. That said, loans of a personal nature whether back by an asset or not, tend to be assessed on your tax return or PIT. In this case the bank would be looking at your 2016 return.

The amount then loaned will depend on the bank, the big 3 or 4 will lend you the least, but other places will lend you more, but you may need to be content with an interest rate higher than the 4-4.5% that the big 3 offer. Depending on your type of employment and length of contract, to get 400k you will need to have between 80 and 120k after deductions on your 2016 PIT. This is very rough as there are many variables and to get precise answers you need to speak to a few banks. PKO BP, WBK and Pekao are the big ones but the small ones such as mBank Millenium and others will probably be able to offer you a higher loan to earnings ratio possibly at the cost of interest.
delphiandomine 88 | 18,475
17 Aug 2017 #8
Usually the pre-contract agreements contain a clause that the deposit is returned if the mortgage isn't approved.
OP Alexbrz
17 Aug 2017 #9
@delphiandomine Yes, thanks! We just got confirmed that this clause is accepted. @polinv the best rate we can currently get, as it looks like now, is at Citi Handlowy. They have some special deal if you start your request before the 31st this month. Anyhow, they all seem to accept my "fear" for the Polish system, and at least this way it looks like we have nothing to loose (apart from maybe a bit worse rates, although so far that doesnt seem to be the case) and only to gain getting rid of paying rent.

It helps that my GF works in the same company, has a solid reason to just have started/not having a permanent contract, and the mortgage still being in just my name. On paper - i could already get it alone, and there's a second person "liable" if i cant pay up. Should be fine.

Will keep this topic updated, for future foreigners with cold feet. All your input so far is greatly appreciated!
24 Oct 2018 #10
I am American, with a perm contract and i went to a well known mortgage broker in Poland and they sent my application to maybe 8 banks. I had 20% down payment and was looking for 80% financing on a house for about 550K-PLN. Guess what? Only one back came back with an offer after 10 weeks of waiting , it was DB and they offered 60% financing. So I demanded a lower interest rate then the bullcrap +2% over the Warsaw InterBank Offered Rate (WIBOR) (most Polish citizens I know got their mortgages at 0.4% over WIBOR). They refused so I said F*ck These (((Bankers))) and I paid cash! AMERICA F-YEAH!

Love Poland but if you are a NON-EU person FORGET ABOUT IT! PAY CASH or just RENT (cheaper) and invest difference else where!
MoOli 9 | 480
24 Oct 2018 #11
That's why I never took mortgage in Poland.I don't like variable rates as the rates are going up.
26 Oct 2018 #12
What do you advice if your wife is Polish and you are non-EU
MoOli 9 | 480
26 Oct 2018 #13
Depends on your residence and financial status in Poland.

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