Buying a home in Poland often involves taking out a mortgage (“kredyt hipoteczny”), and while the process is well-regulated and relatively transparent, it has some country-specific features worth understanding. Below is a clear overview of how mortgages work in Poland, who can apply, and what to watch out for.

1. What Is a Mortgage in Poland?

A Polish mortgage is a long-term bank loan secured by real estate located in Poland. The property itself serves as collateral, and the mortgage is registered in the land and mortgage register (księga wieczysta). Loan terms typically range from 20 to 30 years.

Mortgages are most commonly used to:

  • Buy an apartment or house on the primary or secondary market
  • Build a house
  • Refinance an existing mortgage

2. Currency and Interest Rates

Most mortgages in Poland are issued in Polish złoty (PLN). Foreign-currency mortgages (such as CHF or EUR) are now rare and heavily restricted due to past risks.

Interest rates are usually:

  • Variable rate (based on a reference rate such as WIBOR or the newer WIRON plus a bank margin), or
  • Periodically fixed (commonly fixed for 5 years, then converted to variable unless refixed)

Borrowers should be aware that variable rates can significantly affect monthly payments during periods of interest rate volatility.

3. Down Payment Requirements

Polish banks generally require a minimum down payment of 10–20% of the property value:

  • 20% is standard
  • 10% may be accepted if additional insurance or collateral is provided

Funds must usually come from the borrower’s own savings (not another loan).

4. Who Can Apply?

Mortgages in Poland are available to:

  • Polish citizens
  • EU citizens
  • Non-EU foreigners (often with additional requirements)

Banks assess:

  • Income stability and type of employment
  • Credit history (in Poland or abroad)
  • Existing financial obligations
  • Age (loan must typically be repaid before age 70–75)

Foreign applicants may need residence permits, translated documents, and sometimes higher down payments.

5. Key Costs to Consider

Beyond interest, borrowers should budget for:

  • Bank commission (sometimes 0–3%)
  • Property valuation
  • Notary and land register fees
  • Mortgage insurance (temporary or life insurance)
  • Property insurance (mandatory)

There is no PCC tax (property transfer tax) on new-build properties, but it applies to most secondary-market purchases.

6. Government Support Programs

Poland has periodically introduced state-supported mortgage programs aimed at first-time buyers or young families. These programs change over time, so eligibility and availability should always be checked at the moment of application.

7. Approval Timeline

From application to payout, the mortgage process typically takes 4–8 weeks, depending on:

  • Completeness of documentation
  • Bank procedures
  • Property legal status

Early preparation can significantly speed things up.

8. Is a Mortgage in Poland a Good Idea?

A mortgage in Poland can be a sensible way to finance property, especially given strong legal protections for borrowers and clear banking regulations. However, careful comparison of offers, understanding interest rate risks, and realistic budgeting are essential before committing.

Conclusion
Mortgages in Poland are accessible, structured, and well-regulated, but they require thoughtful planning. Whether you are a Polish citizen or a foreign buyer, understanding local rules, costs, and risks will help you make a confident and informed decision when purchasing property.