There is a mortgage program in Poland which is backed by Polish government (Rodzinny Kredyt Mieszkaniowy). The program allows you to borrow up to 100% of the value of a property. Thus, you don’t need a deposit. In some cases a deposit is required but it can be lower than 10%.
The story
In July 2024 I was approached by a client who wanted to buy an apartment in Poland. He wanted to check his eligibility for a mortgage and to get to know as much as possible about mortgages in Poland.
He met the basic requirements for a mortgage in Poland. His maximum borrowing power was around 600,000 PLN (depending on a bank).
The main challenge was down to a deposit – the client couldn’t afford to put 10% deposit which is a minimum for a normal mortgage in Poland. Apart from that he needed to borrow extra money for renovation.
The Solution
He met the criteria for Rodzinny Kredyt Mieszkaniowy. In September 2024 he found an apartment which also met the criteria for that program.
- Type of a property: apartment (the building is under construction)
- Location: Wólka Kosowska (near Warsaw)
- Size: 57.66 sqm
- Purchase price: 489,000 PLN
- Price per sqm: 8,480 PLN/sqm
- Additional amount for renovation: 61,000 PLN
So, the total cost of the investment was 550,000 PLN (489,000 plus 61,000). Polish government guarantees 20% of a mortgage, up to 100,000 PLN. In this case 20% is 110,000 PLN. That’s why client needed to put 10,000 PLN as a down payment. The rest (540,000 PLN) was a mortgage granted by a bank.
Thus, the client got a mortgage for 98% of the purchase price plus additional amount for finishing the property. He had to put 10,000 PLN down payment, which is 2% of the purchase price.
The table below shows the closing costs.
The table below shows the mortgage costs.
