The minimum private contribution in 2022 – depending on the bank – is 10%. Or 20 percent of the value of the financed property. For a home loan, the recommended limit is 20%. A larger private contribution means better terms of the loan agreement. The minimum contribution is associated with additional costs – usually an increased margin. Which bank offers the best terms with the least private contribution?

Latest investigation: March 7, 2022

The ranking is created according to the most selected offers

private mortgage loan		12 – 420 months Payment period	20,000 – 2,000,000 PLN ? Loan amounts up to 3 million PLN are available sum	2.80% ? APRC for a loan at PKO Bank Polski: 2.80% APRC for a loan at PKO Bank Hipoteczny: 2.81% APRC	1.10% ? In the first year 2.07% in subsequent years. Lower loan margin in the green version edge	0 ? 0% commission when using unemployment insurance لجنة	443 people chose this offer ” Check “ ⊕ Add to Compare ⊖ Remove from comparison
Mortgage with good terms		12 – 360 months Payment period	100,000 – 2,000,000 PLN ? Loan amounts up to 4 million PLN are available sum	3.43% APRC	2.10% edge	0% لجنة	177 people chose this offer ” Check “ ⊕ Add to Compare ⊖ Remove from comparison
millennium home loan		72 – 420 months Payment period	20,000 – 2,000,000 PLN ? Larger loan amounts are available sum	6% APRC	2.90% edge	0% لجنة	157 people chose this offer ” Check “ ⊕ Add to Compare ⊖ Remove from comparison

Why do banks require private joint stock?

Banks require each person who applies for a mortgage to pay a special contribution of a certain amount. On the one hand, this requirement is the result of recommendation S made by the Polish Financial Supervisory Authority, and on the other hand, it is also an additional form of guarantee for the bank. . In view of the above recommendation, the Polish Financial Supervisory Authority takes care of the stability of the credit market, protects the interests of banks and future borrowers.

The minimum contribution for a mortgage loan reduces, at least in part, the credit risk incurred by the bank. In addition, the requirement to receive a special contribution allows you to consider the financial situation of the future borrower. If he has no savings or has something to replace his own contribution, he may not be able to pay his debts in the future. And vice versa: a person with savings is a reliable and financially credible customer from the point of view of the bank who should not have problems repaying the loan on time in the future.

Private contribution makes mortgage loans safer for clients and banks. The maximum permissible limit reduces the risk of speculation in the housing market and stabilizes real estate prices.

Minimum contribution for a mortgage loan – what is it?

The special contribution required with a housing loan is an additional loan payment that a potential borrower must pay in order to obtain a loan to purchase an apartment. The purpose of the private contribution is to reduce the amount of debts of the future customer and increase his financial stability. Obviously, the most important thing for a bank is that the person who takes out a mortgage is able to pay it back on time.

What is the minimum private contribution?

As to what the required amount of private contribution is , anyone who compares mortgage loans is wondering. For those who dream of being “their own”, we have optimistic news. Most banks have returned the amount of their contribution in 2022 to pre-pandemic levels.

Let us emphasize that those who have a private contribution higher than the minimum in the case of a housing loan, the bank will “reward” better terms of the loan agreement . Obviously, the more we save, the less mortgage we need, which in turn means less debt and a lower cost of the loan.

As you can see, the offer is limited to 10 percent. She is very rich. However, we must remember two things. First , the lower contribution is usually associated with a temporary increase in the housing loan margin . Second, the lower level is available under additional circumstances.

For example, in Pekao SA 10 percent. A special contribution is available when purchasing an apartment. If we want to finance the construction of a house with a mortgage, our minimum contribution will already be 20%.

The Millennium has slightly different terms for taking advantage of a low contribution. There is 10 percent. Depends on the value of the property and its location. For an mBank mortgage loan, the home loan limit increases to 3rd and above.

How was the required contribution amount changed?

Personal contribution is the most important issue to consider when getting a mortgage. Even if we complete all the formalities and do not have the funds required by the bank, the financial institution will refuse to give us a loan. It is clear that the higher the down payment, the more reliable our customers will be for the bank.

Hence: we can count on the terms of the loan agreement more attractive than a person with a meager private contribution. It is also worth noting that the contribution cannot come from credits and loans. Most importantly, it doesn’t have to be criticism only.

What could be a special contribution? For example, real estate or other money accumulated in a retirement account (IKE / IKZE or PPK). Building plot as a private contribution is also a popular solution. In the case of building a house, the Bank may also recognize the purchased building materials as a contribution from it.

For more than 3 years, i.e. from the beginning of 2017, the recommended minimum private contribution is 20%. Let us remind you that until the end of 2014, the required amount was 5%. property values. The first changes in this area were translated into the fact that by the end of 2015 the minimum private contribution was already 10%. on the value of the building. By the end of 2016, borrowers should have had a minimum private contribution of 15%. The last changes so far came in 2017. Since the beginning of 2017, the minimum private contribution (if we don’t take insurance for example) has been 20%.

However, it does not mention that the minimum contribution for a mortgage loan will not be raised to 30% someday. The conclusions of the survey conducted by the National Bank of Poland do not raise optimism. Some banks have increased the loan margin, which means an increase in other costs of this obligation.

How is the private contribution calculated?

The current minimum contribution for a mortgage loan is related to recommendation S. Recommendation S, “proposed” by the Polish Financial Supervisory Authority (KNF), relates to credit exposure, ie a mortgage loan. The bank may not lend the entire value of the property subject to the guarantee. Thus, the bank has the right to expect a definite special contribution from the future borrower.

When answering the question of how to calculate your own contribution, it should be noted that the minimum contribution for a mortgage loan results directly from the value of the property. Which we want to finance with a loan. The lower the value of the buildings we are interested in, the lower our private contribution that the Bank expects from us .

For example: If the property on which we want to buy a mortgage is 350,000. zloty by 10 per cent. With our own contribution, we should have 35 thousand zlotys. At 20 percent her own contribution will be twice that, i.e. 70 thousand. zloty.

Remember, however, that the value of the property is determined by the property appraiser. It is on the basis of his survey that his contribution rate is calculated.

Apartment without private contribution in 2022?

The solution to building availability problems is the Government’s Secured Housing Loan Program. From the middle of this year, the “Apartment Without Private Contribution” project will come into effect, which aims to help improve the creditworthiness of people who can afford a loan but have not raised the required capital.

Individuals, childless couples and families with children can benefit from the programme. Minute loan period. 15 years. The opportunity to obtain a mortgage without a special contribution applies only to obligations in Polish zloty, a guarantees may cover a maximum of 20% of the special contribution .

You cannot own any other property to become a beneficiary of the program. The exception is families with two or more children. In addition, there will be an upper limit on the price per square meter of the financed property.

The introduction of restrictive price limits may lead to the fact that the availability of real estate that can be purchased in the “apartment without down payment” program will be significantly limited. The Secured Home Loan Law will enter into force on May 27, 2022.

It may turn out that the government guaranteed housing loan program will be less profitable than, for example, the mortgage loan for young people that is available today in banks.

Low Private Contribution Loan – What Should You Pay Attention To?

Borrowers do not usually have the luxury of choosing between the minimum 20% and the 20% recommended by the Polish Financial Supervisory Authority. private contribution. At 10 percent, the Bank’s contribution requires additional collateral. Other than a mortgage entry. It can be a lower contribution insurance (UNWW) or an increase in margin (often temporary, rarely permanent).

Banks usually finance the UNWW themselves, but this ultimately increases the overall cost of the housing loan. Therefore, before buying a property on a loan, it is worth calculating whether it will be unprofitable for us to collect more money.

A special contribution in 2022 – which is better?

Recent increases in interest rates have had a major impact on the creditworthiness of Polish and Polish women. We must prepare for the fact that this is not the end. The amount of the special contribution affects the acquisition of the mortgage. Usually more capital is cheaper credit.

The fact that price increases are also preventing increases in housing prices in Poland may be a small consolation. The dynamics in relation to prices from the secondary market and the primary market are decreasing (albeit to a lesser extent so far).

If we have creditworthiness and we are sure that even when the interest rates reach 3-4% we will be able to settle the obligations, even if the private contribution is low it should not be an obstacle to getting a mortgage.

As a last resort, the contribution amount should not be taken into account in the first place. Our interest must be driven by the commitment’s effective annual interest rate and whether the loan is based on a fixed or variable rate.

sources:

https://www.nbp.pl/home.aspxf=/aktualnosci/wiadomosci_2020/kredytowy2020_2.html

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