Mortgage in Poland – Basics for Foreigners (1/3)

In recent years, Poland has become a popular living place for expats from around the globe. By 2025, the number of foreigners living here had already surpassed one million. A strong job market, relatively low costs of living, and high level of safety all contribute to a comfortable lifestyle, making Poland an appealing place to settle down. As a result, more and more expats are considering buying property here — and for many, that means taking out a mortgage.

From this article you will learn:
• Can a foreigner get a mortgage in Poland?
• What can be financed with a mortgage in Poland?
• What decisions every borrower has to take?
• What costs you need to be prepared for?

Mortgage in Poland – A step-by-step guide for foreigners

Getting a mortgage is never simple — let alone in a foreign country. That’s why we’ve decided to put together this short, three-part series of articles to help you navigate the process with confidence. Here is what we’ll cover:

• In this first part, we cover the basics: types of mortgages available in Poland, their key features, and the decisions every borrower needs to make.
• In part two, we’ll go over all the additional requirements Polish banks have for non-citizens applying for a mortgage.
• And in part three, we’ll guide you through the step-by-step process of getting a mortgage in Poland — from the idea of buying a property all the way to getting your keys (and even beyond 😊).

Can a foreigner get a mortgage in Poland?

Short answer is yes. We’ve helped hundreds of expats successfully secure a mortgage in Poland. Today, the vast majority of banks in Poland provide mortgage loans to foreigners. While there are few differences in requirements for foreigners compared to Polish citizens, most of the rules are exactly the same. If you’re living in Poland legally, working here, or running your own business, getting a mortgage shouldn’t be a problem.

That being said, it’s crucial to understand how the Polish mortgage market works and what kinds of products are available before making any decisions. Being well-prepared not only helps you make a safe, informed decision but can also save you a significant amount of money — sometimes tens or even hundreds of thousands of złotys — this is how much costs can differ from offer to offer.

The basics of the Polish mortgage market

Under Polish law, a mortgage is a contract under which the lender provides the borrower with a loan secured by a property, intended to finance the purchase of ownership rights to real estate.

In most cases, the property that secures the loan is the same one that is being financed by the mortgage. Put simply, you borrow money from the bank, and if you fail to make your payments on time, the bank has the right to take over your property.

What can be financed with a mortgage loan in Poland?

In Poland, there are several types of loans that fall under the category of a mortgage. Here are the main ones:

• Home Loan (pl.: kredyt mieszkaniowy) – This is what we most often mean, when we think of mortgage. It’s a purpose-specific loan, which must be used for housing-related transaction, such as:
  • buying an apartment
  • buying a plot of land
  • buying a house
  • buying a house with land
  • finishing or renovating a property

We’ll cover home loans in more detail in the next sections, but for now let’s look at other types of mortgage financing available.

• Mortgage-Backed Loan (pl.: pożyczka hipoteczna) – Unlike a home loan, this type of financing can be used for any purpose (e.g., buying a car, funding a holiday or other expenses). Essentially, you are borrowing against the value of a property you already own, freeing the capital that is freezed there. 

• Mortgage Refinancing (pl.: refinansowanie kredytu) – Many borrowers don’t realize that they don’t have to stick to the same bank for the entire life of their mortgage. Quite the opposite. If market conditions improve, we recommend our clients to transfer their loans to another bank, on better terms. In practice, this means taking out a new loan to repay the old one – this is called mortgage refinancing. Refinancing can lower your interest rate and instalment amount and potentially save you tens — or even hundreds — of thousands of złotys in interest over time.

• Debt Consolidation Loan (pl.: kredyt konsolidacyjny) – This loan allows you to combine several existing debts into one — usually with a lower monthly instalment but a longer repayment period (and therefore a higher overall cost). You can consolidate mortgages, cash loans, and even credit card debt.

Home loans in Poland – key information

Let’s now focus on the most important part – mortgage loans for housing purposes (home loans). In Poland, mortgage products can differ slightly from those offered in other countries. Before applying, it’s worth understanding main characteristics and the choices every borrower needs to make.

Creditworthiness

• Having sufficient creditworthiness is the key condition for obtaining a mortgage loan in Poland.
• Your creditworthiness is determined by your income, living expenses, existing financial obligations, and certain non-financial factors (like your age or specific loan parameters).
• For foreign nationals, it is especially important that income is denominated in Polish zloty (PLN) and paid into a Polish bank account.
• When assessing your creditworthiness, banks in Poland always check your credit history and credit score in Polish credit bureau (BIK).
• In the case of foreigners, banks may also access credit history from before their arrival in Poland. As of today, this often applies to citizens of Ukraine, Russia and Belarus.
• You can use our creditworthiness calculator to get an initial estimate of the maximum loan amount you may qualify for. Keep in mind, however, that this is only an approximate result — credit capacity may vary between banks and change over time. If you’d like a more precise assessment, feel free to contact us directly.
• If you’d like to learn more about how creditworthiness works, we’ve prepared a dedicated article that covers this topic in detail.

Down payment and LTV (Loan-to-Value) ratio

• To decrease the risk, banks do not offer mortgages for 100% of the property’s value.
• A down payment is the portion of the property’s price that you need to cover with your own funds.
• In Poland, the maximum loan-to-value (LTV) ratio is 80–90%. This means that your down payment (pl: wkład własny) must cover at least 10–20% of the property’s appraised value, depending on the bank.
• There are exceptions to this rule, namely government programs that guarantee the down payment. Foreigners can also apply, although they must meet a number of specific conditions.
• If your down payment is below 20%, banks typically require high LTV insurance, most often in the form of a higher interest rate, which increases the total cost of the loan. This way, the bank compensates for additional risk of the transaction.
• In some cases, the bank may demand an even higher down payment, depending on factors such as property characteristics, your financial situation, or the size of the loan.
• To learn more about down payment, click here.

Types of interest rates: variable and fixed-term

In Poland, mortgage loans come with two types of interest rate structures: variable (pl: oprocentowanie zmienne) and fixed-term (pl: oprocentowanie okresowo stałe).

• Variable interest rate – it consists of the WIBOR reference rate and bank’s margin. The margin remains constant, while WIBOR changes, primarily due to central bank decisions. As WIBOR moves, so does the amount of interest you owe, directly affecting your monthly instalment.
• Fixed-term interest rate – locks your interest rate for a set period (usually 5 years) shielding you from fluctuations of the WIBOR reference rate. Once the fixed period ends, you can either lock in again at current market rate or switch to a variable rate.
• Unfortunately currently, there is no full-term fixed-rate mortgage offer available in Poland.
• Fixed-term rates are usually slightly higher than variable ones because the bank has to hedge risk against WIBOR rate changes.
• Important: During a fixed-rate period, you cannot switch to variable interest. However, you can refinance your mortgage in another bank if better fixed-rate offers become available.

Which interest type is best for you? That depends on your risk tolerance and financial strategy — we’ll explore this topic in detail in a separate article.

Types of instalments: fixed and variable

Both fixed instalments (pl: raty równe)  and variable (decreasing) instalments (pl: raty malejące) consist of two parts:

• Principal – which reduces your outstanding loan balance.
• Interest – the bank’s fee for lending you the money.

Example:
Let’s say you owe 400,000 PLN on your mortgage, and your monthly instalment is 2,500 PLN. This splits into:

• Principal = 500 PLN → deducted from your loan balance.
• Interest = 2,000 PLN → bank’s fee.

After your monthly payment, your remaining loan will be 399,500 PLN (400,000– 500). Paid interest doesn’t reduce your debt balance, only the principal does.

Now lets explore the difference between two types of instalments available:

• Fixed instalments – each monthly payment is of the same amount. At first, the principal portion is smaller and the interest portion larger, but over time the share of principal grows and the share of interest shrinks accordingly, keeping the instalment amount stable.

• Variable (decreasing) instalments – the principal portion stays constant throughout the loan, while the interest decreases as your loan balance goes down. Due to this, your monthly payments start high (compared to fixed instalments) but decrease over time.

Since equal installments are lower at the beginning, they increase the maximum amount you can borrow from the bank. However, they result in a higher total loan cost compared to variable installments.

Mortgage offers: standard vs. cross-Sell

Banks in Poland usually present two types of mortgage offers: standard and special (cross-sell).

• Standard offers – straightforward, no strings attached, at standard interest.

• Special (cross-sell) offers – can lower your interest but come with conditions, such as:
  • Transferring a set amount into your bank account each month.
  • Making a minimum number of card transactions each month.
  • Taking additional products like insurance or credit cards.

These promotional deals can be attractive because they lower interest or commission on your mortgage, reducing the overall cost of the loan. However, it’s important to carefully evaluate whether the additional products are truly useful to you and if you actually will be using them throughout the loan term.

Costs of taking a mortgage in Poland

When buying property with a mortgage, you’ll need to budget for more than just your down payment. Beside the interest that you’ll have to pay for the borrowed capital, there are some up-front costs you need to prepare for. Based on our experience, here’s what you should expect:

Type of Property	Additional Costs
Primary market	~1–4% of the property price
Secondary market	~3–6% of the property price

These costs can include:

• Bank’s commission: 0–2% of the loan amount
• Real estate agent’s commission: 0–4% of the property price
• Property valuation fee: 400–1,000 PLN
• Life/unemployment insurance: 100–300 PLN/month or one-time payment of several thousand PLN
• Property insurence 400–800 PLN/year
• Costs of cross-sold products (depending on what you agree to)
• Notary fees: typically 2,000–4,000 PLN
• Court fees: typically few hundred PLN
• PCC tax (only secondary market, your first property is exempt): 2% of the property price

Summary

More and more foreigners are deciding to buy property in Poland – and rightly so, as most banks now have no problem granting them mortgage loans. However, to truly enjoy your new home and make sure your mortgage is taken on the best possible terms, it’s important to understand how the Polish mortgage market works. Proper preparation helps you avoid costly mistakes and can save you tens of thousands of zlotys.

After reading this post, you already know a lot. In the second part of our series, we’ll explain all the additional requirements that Polish banks impose on foreigners applying for a mortgage.

If you’re planning to buy a property in Poland – get in touch with us. As experienced mortgage brokers, we’ll help you find the best offers and guide you through the entire process, from start to finish, smoothly and with confidence.