Archive January 17, 2020

Credit for the immigrant

Many citizen are educated and earn abroad, but most of them plan to return to the country. Earned money often invest in real estate in the country. Just like foreigners living and working in our country.

The loan for a person who works abroad

The loan for a person who works abroad

A loan for a person earning abroad is already a norm at a bank. All you have to do is document your income and send a certificate of employment – sometimes even without a translation. In this case, most banks grant a standard loan, requiring only that the credited property be in the country.

A few years ago, the majority of the population emigrated, which either did not have a job in the country, or worked for a relatively low salary, and often had no documented income. So they were not potential clients of the real estate market, the more that they did not have a chance to get a loan from the bank.

Contrary to appearances, the economic emigration of citizen has a big impact on the real estate market. Quite large amounts of money have started to flow into the country, which those working abroad send to families in the country – to a large extent they have been invested in real estate in our country. It is estimated that in 2006 around 1.5-2 million emigrants sent USD 6 billion to the country. To illustrate the scale of the phenomenon – it is 50 percent. direct investment in the country. In addition, a large group of emigrants is currently receiving a high level of documented salary compared to realities, thanks to which they take out loans and buy real estate in the country with a view to returning in a few years.

Mixed couple

Mixed couple

Economic emigration also means more marriages with foreigners. Bankers have also thought about such cases – they allow the possibility of granting credit to a foreigner earning both in the country and abroad. A foreigner who wants to take a loan does not even have to be in a formal relationship with a person of nationality. Joint credit can also be granted to unrelated persons.

Similar offer, but …

Similar offer, but ...

Offers for people who earn income outside of the country or for foreigners do not differ much from those for citizen earning in the country. Pricing conditions, purpose and loan period are similar. The distinguishing feature is the level of mortgage loan investment financing and slightly wider documentation requirements.

Banks are unlikely to finance a 100% mortgage in such a situation. property value, but at most 80 percent In the case of persons working abroad, own contribution (10-40%) may be required, depending on the currency of the loan, type of investment, etc. Due to price differences between the country and other countries, when assessing creditworthiness, the bank may adopt a minimum maintenance cost values ​​higher than those set for customers employed in the country.

How to apply?

How to apply?

The process of applying for a mortgage in the case of people earning income outside of the country and staying outside of the country may look twofold. An attorney can be appointed who will deal with the formalities on behalf of persons residing abroad – submitting an application for a loan, signing a loan agreement, submitting an application for payment. Such power of attorney must be established on a special bank print by the consul.

In addition, the consul must certify the authenticity of the borrowers’ identity card and such a certified copy should be sent with the power of attorney to the bank. The second option – the bank sends customers to complete all documents – a loan application and other forms, which must then be completed with a consul and sent back to the country.

Documents that the bank may request

• standard documents related to real estate (the type of documents required depends on the purpose of the loan),

• identification,

• documents confirming income: – employment certificates, also contracts or agreements confirming employment, – tax declaration, – certificate from the bank credit register, ie the equivalent of the credit check, about the customer’s credit history in the country in which he is employed,

• the history of the invoice influenced by the last 12 months,

• the requirements may also include a residence or work permit, as long as the borrower is in a country where such certification is required. Most banks accept documents in English, in other cases they should be translated by a sworn translator. Note: Not all banks require all of these documents, so you should always make sure what exactly you need to provide.

What is a mortgage loan?


A mortgage is a loan from a bank to buy an apartment. The collateral for this loan is an apartment for which the loan is rams. The fact that the flat is a loan collateral means that if the loan obligation is not repaid on time, the bank may take over the property.

A loan is a liability for years

A loan is a liability for years

In relation to earnings, apartments in the country are expensive. Therefore, the repayment period for a home loan is necessarily long and amounts to several dozen years. By taking such a loan in a bank, you are bound by a financial liability. It will be completed for a very long time. Therefore, it is worth considering whether it is worth doing it. The bank will also “think” about it with you, checking exactly what your income is and whether after deducting the necessary expenses from them, you will have enough money to pay off the next installments.

The fact that it is the cheapest form of borrowing money at the bank is a good reason for taking out a home loan. Home loans have lower interest rates than any other loans.

A mortgage is in short – a mortgage. In most cases, monthly mortgage repayment is a predetermined combination of interest and principal repayments. The amount of the advance may also affect the amount required for final payments and monthly mortgage insurance installments.

Mortgage Depreciation

Mortgage Depreciation

In a process called mortgage amortization – most mortgage repayments are divided into interest repayments and a decrease in the balance of capital. The percentage of the principal amount relative to the interest paid monthly is calculated in such a way that the principal amount reaches zero after the final payment.

For example, a standard 30-year mortgage will be divided into 360 equal payments, each consisting of different amounts of interest and capital. Several mortgages allow interest-only payments or payments that do not even cover full interest. However, people who plan to own their own apartments or other real estate purchased on credit should choose a depreciated mortgage.

In short, depreciation means the process of dividing payments between interest and the principal amount. Determines how the payment goes, ie payments go mainly towards interest rather than reducing the balance of the main amount.

Mortgage repayment

Mortgage repayment

The most popular mortgages offer a fixed interest rate with a repayment period of 15, 20 or 30 years. Fixed rate mortgages guarantee the same rate throughout the life of the loan, which means that your monthly installment will not increase, even if market rates rise after signing the contract.

Assuming a similar rate, longer-term mortgages offer lower monthly payments than shorter ones, but the increased number of payments means you’ll also pay more interest on the entire loan.

How to take a mortgage?

How to take a mortgage?

At this time, it’s best to use the services of a financial advisor. Such a person will lead you “step by step” when applying for a mortgage. You can also travel this route yourself. However, it is worth knowing what to do to get such a loan.

To start with, it’s worth checking your credit history. Special institutions, have been created in the country. You can contact the credit bureau directly.

If the information from the credit bureau is good for you, then you can check your credit standing. You can do it for free using many credit comparison websites or directly from the bank. The greater the creditworthiness, the more credit you can take.

The number of people interested in an inverted mortgage is growing, and the law is still missing

Over 270,000 in the last twenty years, Britons over the age of 50 have signed reverse mortgage agreements totaling over $ 12 billion. In Poland, the reverse mortgage has been talked for almost a dozen years. We did not see statutory regulations but offers in this matter.

Currently, in Poland, this product is offered only by mortgage funds, which in exchange for the transfer of ownership of the apartment by the senior to the fund, undertake to pay a specified lifetime annuity and provide the pensioner with the right to use the flat or house for life (annuity agreement for remuneration in the form of transferring the right to real estate together with establishing lifetime use of the real estate for the benefit of a senior citizen). This is the so-called sales model.

This one is the only one operating on the Polish market


In fact, the first contracts were concluded five years ago. Agreements with seniors are concluded on the basis of the provisions of the Civil Code regarding annuity and paid pensions.

At the time of signing the contract, the apartment ceases to be the property of the senior in exchange for the pension, but he has the right to use it to death. A disadvantage of such contracts is the lack of protection for the senior from the bankruptcy of the company that became the owner of the property. In this case, according to applicable law, the senior’s apartment would become part of the estate.

A life contract would, therefore, protect the senior from being on the pavement, but the fact that he did not pay the pension would not cause him to regain his property. This is also certainly the reason why older people are very cautious about mortgage fund offers. Especially since people with very valuable real estate (from USD 500,000 up) and relatively old can count on a solid financial injection.

A reverse mortgage is still a nice service

A reverse mortgage is still a nice service

although its development is dynamic – claims Robert Majkowski. President of the Home Mortgage Fund. – Our strategy is to acquire a property portfolio worth at least USD 250 million by the end of 2015 – emphasizes Robert Majkowski.

The second functioning reverse mortgage model in the world is the so-called credit model. Banks would offer it and the property would be secured. Such a loan would be paid out according to a predetermined schedule and it was the heir who would decide whether the loan would be repaid in cash or if the bank would simply take over the property.

According to Good Finance’s forecast, nearly 75 percent of Poles do not save for an additional pension, and about 98 percent. current pensioners indicate pensions as the only source of income. For many of them, the only significant assets are their own apartments, i.e. funds frozen as if in real estate.

Work on the government reverse mortgage law is moving very slowly


It is to include not only regulations regarding reverse mortgage (which would be offered by banks), but also life and annuities, which are services that already exist on the Polish market.

The bill assumes that companies offering reverse mortgages will be subject to PFSA supervision or notification to the register kept by the Ministry of Economy. It also determines the capital necessary to establish such a company. Mortgage funds are not afraid of competition from banks.