Mortgage pitfalls

    Pułapki kredytu hipotecznego

    The vast majority of Poles decide to buy a flat on a loan. Even though this is a lifelong commitment, most young people have no other choice. Credit is a burden, however, everyone dreams of their own corner. However, it is worth remembering a few important rules that will help you avoid problems related to the mortgage.

    It is worth knowing


    How to know exactly how much the loan installment will be per month? The amount of the installment and the total amount to be repaid by the bank are influenced by various costs that are additional and practically no bank mentions them in their advertisements. What are the hidden costs?



    The most basic fee that a bank simply earns when granting a loan is interest. The margin affecting the amount of these interest rates is constant throughout the loan repayment period, so it is easy to calculate its impact on the loan. However, its amount depends on many factors, including will you decide to use additional services as part of taking out a loan, the amount of your own contribution (having an own contribution of 20% of the property value allows you to slightly reduce the margin), the amount of debt, repayment period or credit history. The average margin of banks is currently around 2% and is set in advance in an agreement with the bank. First, make an appointment with the bank and do a loan simulation. Only then should you calmly consider all the pros and cons.



    The commission is a one-time cost that the bank charges for granting the loan. It is a non-refundable fee and depends on the amount of the loan taken. The commission is a percentage of the loan amount determined in advance by the bank – from 0 to 2.5% of the loan value. It is worth asking about it before taking a loan.



    The price of the property that is entered in the loan application is not sufficient evidence for the bank that is to grant you the loan. A bank employee personally checks that the value of the flat or house you want to buy is in agreement with your application. The property value assessment service can be performed by a bank – it is associated with a one-off cost from PLN 120 to PLN 1,200, depending on the type, size and location of the property. You can also provide an appraisal made by a real estate appraiser approved by the bank.



    If we buy real estate on the primary market, each tranche of money paid for construction to the developer’s account will be preceded by a visit by a bank employee at the site of its construction. The fee for this property inspection is approximately PLN 150 each time. This cost applies to those who have decided to buy an apartment in a building that is under construction. Before buying a property, it is worth finding out if the developer from whom you are buying the apartment is reliable and there are no delays in order fulfillment.



    Mortgage loans are granted in various variants. One of the proposals are savings and investment packages. In such a situation, the bank, in addition to granting the loan, indirectly forces its client to accumulate savings in the investment product. This is, of course, the possibility of building capital in a non-standard way, but also another obligation burdening the home budget. It is worth considering whether, despite the bank’s attractive offer, is it not an additional burden for us, will we not incur additional costs?



    To take a loan at a given bank, it is necessary to set up a personal account there. A personal account may be associated with mandatory fees for its maintenance. The amounts may vary from a few to even PLN 20 per month. That is why it is worth choosing banks that do not charge fees for account maintenance. This will allow us to save a large amount of money that can be used for other purposes.



    As in the case of a personal account, some banks “offer” to obtain a credit card. Having a card may be associated with regular fees related to its maintenance, and using it and not paying off the debt within the prescribed time may also be expensive.



    Bridging insurance is a fee that the bank charges its borrowers and is an often forgotten cost. An additional amount of approximately PLN 100-300 should be added throughout all months until the mortgage is entered in the land and mortgage register. This is what the court deals with after signing the notarial deed and it usually takes several months.



    Property insurance is mandatory in all banks because your apartment or house is secured by a mortgage. Insurance for the needs of the loan covers the protection of the property against fire and other random events, in the basic version. By default, you are not protected against your neighbor’s flooding, storm damage or other weather conditions. The bank will, of course, offer you to buy an insurance package at home (cross-selling), but it is definitely more profitable to buy the policy individually outside the loan. It will be a policy that will protect you against various factors.


    Taking out a housing loan obliges us to regularly pay installments, and thus – maintain a stable income. Some banks, in order to protect themselves against the insolvency of their borrowers, force the client to take out unemployment insurance, which must be paid for as long as the debt is paid off. In a crisis situation, the bank repays the installment for you. This is a great option worth buying. In general, the insurance offered under the loan is not profitable because it has many exclusions or is of a low amount. Whenever possible, you should look for insurance options outside the bank where you are taking the loan. They can then be combined with other insurance products. It seems that the only solution worth recommending is unemployment insurance.Unfortunately, most banks impose additional costs that are a condition for granting a mortgage.