What documents are required when applying for a mortgage?
Individuals: ID card, income certificate (e.g., from the employer), employment contract, bank statements, property documents (e.g., notarial deed, land register extract).
Entrepreneurs: Additionally, banks require financial documents of the company: certificates from ZUS and the Tax Office confirming no arrears, PIT forms from recent years, and financial statements such as KPiR or balance sheets.
What is the minimum down payment for a mortgage?
Individuals:
Standardly, banks require a 20% down payment, but there are offers allowing a mortgage with a 10% down payment. In such cases, additional low down payment insurance (UFG) is required. This extra cost enables faster property purchase realization even with lower savings.
Entrepreneurs:
For companies, the minimum down payment is evaluated individually and can range from 20% to 30%, depending on:
• Financial stability of the company: The better the financial situation, the more flexible the bank.
• Credit history: A positive credit repayment history can reduce the down payment requirement.
• Type of financed property: Commercial or investment properties may require a higher down payment.
Government RKM Program (Family Housing Loan):
If you meet the criteria, you can benefit from the RKM program, which allows obtaining a mortgage with a reduced down payment or even a zero down payment in some cases. The program aims to support families and individuals planning to buy their first home or apartment.
Good to know:
• A mortgage with a low down payment may result in a higher installment due to additional insurance.
• Entrepreneurs can sometimes offer other asset securities, such as mortgages on other properties or business assets.
How long does the mortgage process take?
The process usually takes between 3 to 8 weeks, depending on the completeness of the documentation and the bank’s efficiency.
Can I transfer my mortgage to another bank?
Yes, it is possible through mortgage refinancing, which allows changing the bank to obtain better terms, such as lower interest rates or shorter repayment periods. However, check for transfer costs, such as prepayment fees.
Can I repay my mortgage early?
Yes, most banks allow early repayment, but they may charge a fee, especially during the initial years of the loan agreement. Review your contract terms, as sometimes making partial overpayments is more beneficial than full repayment.
What are the additional costs of a mortgage?
• Individuals: Bank commission, insurance (e.g., property insurance, life insurance), notary fees, PCC tax (for secondary market purchases), property valuation costs.
• Entrepreneurs: Additional costs may include financial analysis fees for the company and other securities required by the bank.
Can I sell a property with a mortgage?
Yes, selling a property with an active mortgage is possible. It requires cooperation with the bank and using part of the sale proceeds to repay the debt.
Can I have two mortgages at the same time?
Individuals and Entrepreneurs: Yes, it is possible to have more than one mortgage, provided you have sufficient creditworthiness. The bank will assess your income, liabilities, and credit history to determine your repayment capacity.
What is the difference between fixed and variable mortgage interest rates?
Fixed interest rate: The mortgage installment remains unchanged for a specified period (e.g., 5 years), providing payment stability but potentially higher than the initial variable rate.
Variable interest rate: The mortgage installment fluctuates based on market indicators (e.g., WIBOR), which can mean lower initial payments but comes with the risk of future increases.
What is creditworthiness, and how can I improve it?
• Creditworthiness is your ability to repay a loan, evaluated based on income, expenses, financial obligations, and credit history.
How to improve it?
• Pay off small debts (e.g., credit cards)
• Avoid payment delays
• Increase your income
• Apply for a longer repayment period
Can I get a mortgage as a business owner?
Yes, business owners can apply for a mortgage, but the process differs from standard personal mortgages. Banks evaluate business income, stability, and financial history.
What do banks consider when assessing a business mortgage?
• Income stability: Banks often require documented income for the last 12-24 months.
• Taxation method: PIT-36, PIT-36L, or KPiR – documents must reflect actual revenue and costs.
• ZUS and Tax Office: Certificates confirming no arrears.
• Business type: Established businesses with stable income have a higher chance of favorable mortgage conditions.