How to save thousands of PLN on your mortgage with one simple adjustment?


In Poland, one of the main price-shaping factors in the mortgage is the amount of upfront the customer can pay in advance. 


The minimum is 10% (even though the government has passed a bill this year allowing taking the mortgage without the upfront, but due to being underdeveloped, the scheme remains inactive). To get the cheapest mortgage possible, banks require 20%, and adding another 10% can also make a difference in a few.


The difference in margin between the 10% and 20% upfront mortgage can be even 1% or more per year. A difference of 1% per year for a mortgage worth 500 thousand PLN, and taken for 30 years, means 239,9 PLN per month, or 86364 PLN in the total interest cost. Besides charging a higher margin, with the 10% upfront, banks often require additional insurance, or other additional fees, making the difference even bigger.


Does it mean that once you took a mortgage with 10% upfront you have no choice other than being charged more than others for 30 years? Fortunately no.


For the past years, property prices in Poland are growing steadily and rapidly, which allows many customers to lower their mortgage costs. Let's work as usual based on the example.


We have a person that took two years ago a mortgage for an apartment worth 500 thousand PLN. Upfront was 10% or 50 thousand PLN, so 450 was financed by the bank. Since the mortgage started, the property value grew by 15% - to 575 thousand PLN. Subsequently, the space between the mortgage amount (let's say it is 440 now after two years of repayments), and the property value grew too, and is now 135 thousand PLN, so above 20% of the property value. The customer will now have access to a cheaper mortgage.


Recently, we have gone through a similar process with multiple customers. In case you would like to check your eligibility and enjoy savings in your household budget, please do not hesitate to contact us via - even if this particular example does not match your case, there is almost always a way to save some money by making amendments to the mortgage.


Best regards, Team


Any content provided on this page is to be considered information only. It is not legal advice or a replacement for legal advice. The information posted here by the team is accurate and current to the best of our knowledge as of the date it is posted, but website users should be aware that laws and their application change frequently, sometimes without notice. You shall be fully responsible for any consequences resulting from your use of the page. Any reliance upon any information shall be at your sole risk.


Leave a comment