What is the typical term for a mortgage loan?

Mortgage loans (kredyty hipoteczne) in Poland are granted for terms ranging from 15 to 35 years.

A longer term results in a lower monthly installment, which allows for a higher maximum loan amount. However, this also leads to a higher total cost of the loan. Conversely, a shorter term means higher monthly payments, lower borrowing capacity, but lower total interest over the life of the loan.

This principle applies only up to a 25-year loan term. According to the recommendations of the Polish Financial Supervision Authority (KNF), banks calculate creditworthiness based on a 25-year term, even if the actual loan term is longer. In practice, this means that if a borrower does not have sufficient creditworthiness for a 25-year loan, extending the term will not increase their borrowing capacity.