Can I apply for a mortgage in Poland while working abroad? We check whether there is such a possibility and with what formalities such operation is related.
As a result of Poland’s accession to the European Union, many Poles took up employment in other countries. Of course, in addition to the European market today, we can also work on other continents. Some people associate with travels further perspectives, some plan to return to the country after a few years, which is why they often think about buying real estate in Poland while working abroad.
Only jobs and contracts
People working abroad can apply for a loan to buy real estate in Poland. The most important criterion is the way of employment. To be able to apply for a mortgage, banks require a permanent employment contract or a managerial contract. – Other forms of employment, and above all economic activity, are not accepted by banks – explains Cezary Sobański, a specialist from David Balfour Financial Advisors.
Loans, in accordance with the recommendations of the Polish Financial Supervision Authority, should be granted in the currency in which the borrower concerned earns income. An exception to this rule are situations when mixed income is achieved, i.e. partly abroad and partly in Poland. Then, after passing a rather complicated procedure, we can, despite earning in euros, for example, have a loan in zlotys or vice versa – explains Sobański.
However, due to the fact that some currencies are moderately available, in practice this type of loan can only be obtained in euros, US dollars, francs, pounds, Swedish and Norwegian crowns. – Therefore, from the borrower’s point of view, it does not matter if he is employed in a European Union country. This does not give special facilities in the banking procedure – says Cezary Sobański.
A person working abroad can apply for a loan already having 10 percent of the property’s value for own contribution. However, only one bank declares such a low level. In most offers, the required amount of own funds is between 20 and 30 percent.
You can also apply for a loan to buy a property that is abroad. However, the collateral must be real estate located in Poland. So either we must own a property or have someone who will present such a property as collateral for our loan – explains Sobański. If you buy property in Poland on the basis of income from abroad, you do not need additional security (except for the property you buy, of course).