Mortgage loan? Prepare up to 100,000. PLN in cash
To buy a flat on credit today, you need a solid own contribution. According to Open Finance analysts, a family of three must save up to PLN 80,000 to buy a flat. PLN from your own savings. For many people this may be almost unattainable.
Taxes, commissions, insurance, new credit regulations. All this translates into increasing levels of own contribution that you need to have to get a mortgage loan. According to experts from Open Finance, a family of three, in which two adults earn at the national average level, in order to use their creditworthiness, must have an own contribution of PLN 70-80,000. zlotys.
The expected creditworthiness for a family with a net income of PLN 6,088 is on average PLN 490,000. zloty. with a loan for 30 years. This is the average amount from the offers of 13 banks offering mortgage loans. The highest capacity is calculated by Euro Bank, which in this case offers the possibility of incurring a liability of over PLN 545,000. PLN, Credit Agricole estimated the lowest capacity of the sample family. In a French bank, this amount is only slightly over PLN 327,000. zloty.
| Bank name | Maximum creditworthiness |
|---|---|
| Euro Bank | PLN 545,127 |
| Bank BGŻ BNP Paribas | PLN 526,846 |
| Bank Pekao | PLN 524,100 |
| Bank Millennium | PLN 508,000 |
| Raiffeisen Polbank | PLN 506,000 |
| ING Bank Śląski | PLN 491,731 |
| Santander | PLN 490,295 |
| PKO Bank Hipoteczny | PLN 475,300 |
| PKO Bank Polski | PLN 475,300 |
| Citi Handlowy | PLN 460,000 |
| Alior Bank SA | PLN 459,637 |
| Postal Bank | PLN 440,000 |
| Crédit Agricole | PLN 327,509 |
| Source: Open Finance |
However, please remember that the presented calculations are based on a very strictly defined assumption. It was assumed that the analysis would cover a married couple with one child, in which both adults have been working full-time for 3 years under an indefinite-term contract, and the family income is PLN 6,088 net per month.
Theory and practice
Even though the sample family has a creditworthiness of almost PLN 500,000. PLN, which would allow you to find your dream apartment in any Polish city, future buyers face one more, very serious obstacle. An obstacle that some families may not be able to cope with. To take out a loan for this amount, banks currently require 10%. or even 20 percent own contribution. In the latter case, this means the need to have PLN 122.5 thousand (20 percent of PLN 612.5 thousand) in cash if a debt of PLN 490 thousand (80 percent of PLN 612.5 thousand) is to be incurred. Few young families have savings at this level. Despite your potential creditworthiness, it may turn out that the possibility of taking out a loan is only theoretical.
However, your own contribution is not all costs that you need to take into account. As Bartosz Kurek, an analyst at Open Finance, says – If that were not enough, if you want to buy an apartment, you must also be prepared for the costs of concluding the transaction and taking out a loan. Many of them have to be paid in cash, which means that the 20% own contribution saved may not be enough. For peace of mind, when buying a new “M”, it is worth having at least 3% of its value to cover transaction costs. Unfortunately, in the case of used premises, transaction costs are much higher, so the safety buffer must be higher – about 8% of the property value. Effect? If you want to buy an apartment worth PLN 612.5 thousand and take out PLN 490 thousand in mortgage debt, you must have the previously mentioned PLN 122.5 thousand. PLN as own contribution and from approximately PLN 18,000 to PLN 49,000 to cover other costs. In total, we are talking about cash at the level of PLN 140,000 – PLN 170,000 and this amount does not yet include money for refreshing, finishing and equipping the new premises.
