Pursuant to Recommendations, issued by the Polish Financial Supervision Authority, banks operating in Poland may grant mortgage loans only in the currency in which the client earns.
Therefore, if we earn, for example, in euros, in Poland we can only apply for a mortgage in euros, if we receive salaries in dollars – then we borrow in dollars, etc. Are loans in all currencies available in all banks? While some banks in our country offer loans in the most popular foreign currencies – euros, dollars or British pounds, people earning money, e.g. in Swedish crowns, may face a bigger problem with availability and finding the right offer on the Polish market.
At first glance, getting a loan in PLN with earnings in a foreign currency is therefore impossible. However, there are exceptions to the rule.
Co-borrower to the rescue
A panacea for restrictions contained in Recommendation S is a co-borrower earning in PLN. If there is someone who receives salaries in Polish currency and agrees to take on the role of a co-borrower, the problem will be solved. However, banks may require their own contribution, and its amount depends on where the borrower works. European Union countries are the most preferred. In this case, the minimum own contribution is usually 20 percent. In turn, earning outside the EU can mean a requirement of 40 or even 50 percent. own contribution.
It is also worth knowing that when determining the creditworthiness of a client earning abroad, banks are forced to accept the assumption of a 20% appreciation of the zloty. The final income will therefore be reduced by this amount.
After obtaining a loan in PLN, the customer may report to the bank to disconnect the co-borrower, if he was needed only to receive the loan. In this case, your creditworthiness will be recalculated.
Requirements and formalities
Most of the requirements for borrowers working abroad are the same as for clients earning in PLN. However, the bank will pay particular attention to the form of employment. It must be permanent (employment contract, term contract, contract, etc.). Sometimes even a 12-month seniority in your current position may be required. It is also worth preparing documents confirming revenues in advance – preferably translated by a sworn translator.
It should be remembered that the bank may grant a mortgage only for real estate located in Poland. This is due to the fact that the lender cannot provide security for an apartment or house located abroad.
Loan repayment is another issue. Earning in foreign currency and having liabilities in PLN, we will not avoid the process of currency conversion and sending money from a currency account to PLN. To minimize the costs of such transactions.
Thanks to them, we can send money directly to the bank account in which we have a loan. For example, the user sends British pounds, which are exchanged for zlotys at an attractive rate and go to the recipient’s account.