The process of buying a property in Poland and applying for a mortgage in Poland is different from the process in the UK, UE or USA.
Below I present the basic steps you will have to take to get a mortgage in Poland.
1. Find out how much you can borrow in Polish banks
This is the first thing you should do. You should do it before you start looking for a property. This is very important because banks in Poland are rather strict and conservative. Looking for a property without knowing your cretidworthiness can be a waste of time.
2. Set up your budget
When you know how much you can borrow you should find out what will be the monthly payment for the loan. You should also consider other costs associated with a mortgage and buying a property in Poland.
You can use my Polish Mortgage Repayment Calculator to calculate your monthly mortgage payments in Poland.
3. Find a property and sign a preliminary agreement
This is a very important step. There are exceptions but generally you can’t apply for a mortgage in Poland without a preliminary agreement for purchasing the property. Before you sign it you should check very carefully if the property has no legal drawbacks and is free of any debts.
4. Choose the best banks for you
This is also a very important step. It can be a very big difference between a bank A and a bank B. You can have an interest rate at 7.5% or at 10.5%. You can have 5% or 0% of additional costs. Different stealth fees and charges are also very popular at some banks in Poland. You should also apply to more than one bank. It is good to choose three the best offers and apply to these banks. It makes the transaction safer.
5. Apply for a mortgage
It is crucial to prepare the documentation properly. It helps to get approved for a mortgage and makes the process quicker and easier. Your mortgage advisor will help you to prepare the documentation and to complete the banks’ forms properly. He or she will also submit the application to the bank on your behalf and will look after your applications from start to finish.
6. Choose the best offer and sign the mortgage contract
Before you sign the mortgage contract you should check it carefully. It’s much better to be surprised before signing the contract than after.
7. Sing the final purchase agreement (secondary market)
In the secondary market you sign the final purchase agreement before transferring the money to the seller by the bank. In the primary market the bank transfers the money to the seller before signing the final purchase agreement.
8. Open the loan
You have to provide required documents to the bank. Then the bank will check it. If everything is okay the bank will transfer the money to the seller. Before you sign the mortgage contract and the final purchase agreement you should know what will be required by the bank before opening the loan. Sometimes it can be something undoable.