Buying real estate in Poland attracts both local residents and foreign buyers, and about 50% of transactions are carried out using mortgage lending. One of the main barriers to obtaining it is the need to make a down payment.It ranges from 10% to 20% of the property's value, depending on the bank's conditions and the type of mortgage. Accumulating it is not always easy, especially for young people, families with children, or those just starting their careers.

📊Therefore, the country has a unique banking scheme for providing mortgages without a down payment. Essentially, this is a state program under which the Bank Gospodarstwa Krajowego (BGK) acts as the guarantor for the down payment. How it works in practice:

— Despite the lack of need to contribute your own funds, the borrower goes through the standard lending procedure, including checking creditworthiness, analyzing income, debt burden, and property valuation.
— The program runs until 2030. The bank issues a loan for the full cost of the property (up to 100% of the market price of the object), however, the state guarantee usually does not exceed 100,000 zlotys.
— The guarantee is subject to a 1% commission on its amount, which in practice is equivalent to a maximum of 1000 zlotys.
— In addition to the guarantee commission, the borrower is required to cover ordinary expenses such as: property valuation, insurance, and notary services.

💼Foreigners working or living in Poland can also take advantage of the mortgage loan program without a down payment, but with certain conditions:

— Legal status in Poland. Foreigners must have a valid permanent or temporary residence permit (karta pobytu) or a similar status confirming their long-term stay in the country.
— Permanent income in Poland. Employees with an official employment contract (umowa o pracę) or individual entrepreneurs working under a B2B contract (with a minimum experience of 12-24 months) can apply for a mortgage. The bank will require proof of stable income in Polish currency.
— Credit history. As for Polish citizens, an important criterion is a clean credit history. The borrower should not have overdue debts or other financial problems that could affect their solvency.

📄To obtain a mortgage, a potential buyer must have legal status in Poland. A karta pobytu, permanent residence, temporary residence, or refugee status will suffice for this. Next, banks require confirmation of stable income through:

— Proof of official employment (umowa o pracę contract) or B2B documents (for individual entrepreneurs);
— Tax declarations for the self-employed;
— Pay stubs for the last 3–6 months.

💰For the bank to consider income for the loan, it must be in Polish zlotys. Borrowers receiving income in foreign currency face additional checks and the need to convert funds into the national currency. The required package of documents for submitting an application includes:

— Passport or karta pobytu;
— Proof of stable income;
— Tax declaration for the last year (if working under B2B);
— Property documents (if you already own real estate);
— Credit history or report from the Credit Information Bureau (if available).

🏦Not all banks offer mortgage loans without a down payment, so it's important to choose one that works with the BGK guarantee. Currently, the most well-known banks participating in the program are:

— PKO BP
— Santander
— Bank Pekao
— Alior Bank

Once the bank approves the application, it will conduct a property valuation. At this stage, the bank hires an independent appraiser to determine the market value of the object. In addition, you also need to arrange property insurance. If the bank approves the application, a contract for mortgage services is signed, which is used when purchasing the property.