Repeatedly, borrowers earning abroad point out the difficulty in obtaining a mortgage in Poland. Indeed, banks do not facilitate their tasks and are quite reluctant to clients from this group. Why is getting a mortgage for people working in other countries so problematic?
Mortgage? Only in Poland!
Poles who have left the country and work abroad are usually divided into two groups: those who left permanently and those who plan to stay there only temporarily. There are also those who left their families, flats and things in Poland and only earn in another country. Especially the latter associate their future (and present) with their own country.
Achieving higher earnings abroad allows them for better living conditions in Poland and even helps to save. Such people very often decide to take a mortgage because they believe that in such a situation they will be able to afford paying off installments without any problems. Unfortunately, banks look at it quite differently.
For a bank providing a mortgage (often for a high amount and for many years), it is important for the borrower to have a stable financial position and good credit history. Therefore, the type of employment, contract and amount of earnings as well as the overall financial situation of the client and his family are taken into account.
The ideal solution for a bank is a client earning in the country, under an indefinite employment contract, with good earnings and high own contribution. When a person appears working on similar principles, but outside the country, the bank very carefully considers his situation and approaches him more restrictively. What is considered?
Employment contract for an indefinite period
Banks look at customers with such a deal much more favorably. Unfortunately, it can be very difficult to get such a contract when working abroad. The employer is aware that for many Poles, working in another country is only a temporary solution and they may want to return to their families at any time.
Income documentation. Banks usually require documentation of their income, e.g. in the form of an account statement. Working in another country usually involves paying money to a foreign account or even in the form of a check from your employer. In this case, it’s always worth getting the necessary documents and if necessary go to a sworn translator to translate them into Polish.
Employer’s country. Depending on the country in which you work, banks in Poland may have completely different credit rules. Most often it comes down to the amount of own contribution, the total amount of the loan or the loan period. It is certainly easier for people working in the European Union to secure a mortgage for a property in Poland. After all, many situations are considered individually, where the customer’s creditworthiness is also taken into account and also includes various procedures to ensure the best possible collateral for the loan. To give yourself more opportunities to get a mortgage in Poland, it is worth choosing a bank that has its branches also in the country in which we work and also authorize someone to contact a Polish bank who will be able to provide all documents.
Currency in which the person earns determines the currency of the loan
The management of mortgage loans by banks is specified in Recommendation S belonging to the Polish Financial Supervision Authority. Thanks to it, it is known what are the rules in the bank-customer relationship and how the bank’s internal activities look when granting a mortgage.
In this case, we can distinguish Recommendation 6, which says that “The bank should grant mortgage-secured loans to retail clients only in the currency in which they earn income, also for high-income clients.” This provision is the answer to the problems of “frankers” as a consequence, it was to protect borrowers from taking out mortgages in other currencies whose values are subject to constant fluctuations in the market and may cause high differences in exchange rates and at the same time be difficult to pay back.
As a result, this recommendation also became an obstacle for those who wanted to get a loan in PLN while earning in a foreign currency. Currently, they no longer have such an option and the offer of loans in foreign currency is limited, so it is more difficult to find one that would meet the requirements of a client working abroad. If you want to know the other recommendations, click here .