Until recently, getting a mortgage was a child’s play, and banks treated their own contribution as a bonus. Unfortunately, the rules have changed. In 2014, the Polish Financial Supervision Authority introduced the “S” recommendation, and it was virtually impossible to obtain a mortgage loan without an own contribution. Are you sure?

The regulations have indeed changed, but this does not mean that you can not get around them and get a mortgage without your own contribution. However, it should be remembered that the bank will always be more willing to lend to the customer with own contribution, because it increases its credibility.

Mortgage loan without own contribution. A loan from a developer

Mortgage loan without own contribution. A loan from a developer

The least complicated way is to ask for a loan from the developer, from whom we would like to buy a flat. It should be remembered that they care primarily for the quick sale of apartments. Many large construction companies allow customers to take out loans for their own contribution. It is worth to be interested in this subject when we find our dream apartment, but we will run out of money – that is, 20% of our own contribution required.

Mortgage loan without own contribution. Securing another property

Mortgage loan without own contribution. Securing another property

The second relatively simple way to bypass your own contribution and get a mortgage is “pledge”. Colloquially speaking, of course. If you are in possession of another flat or plot, the value of which exceeds the required 20% of your own contribution, the bank may agree to grant a mortgage, considering it as collateral. Interestingly, a property or plot that will become a security does not have to be our property. It may belong to third parties – most often they are parents or other close relatives of the borrower.

Mortgage loan without own contribution. A loan from the company’s cash register

Mortgage loan without own contribution. A loan from the company

The third way is to ask for a loan from the factory cash register if you are working in a large workplace or a “budgets”. The money obtained in this way can be used to finance own contribution. The upside is also the fact that loans of this type are not registered in credit bureaus – this means that the creditworthiness of the bank will not be underestimated. The long repayment period is an additional bonus that will help us avoid unnecessary burdening of the monthly home budget.

Mortgage loan without own contribution. Overpricing the value of the property

Mortgage loan without own contribution. Overpricing the value of the property

The last way, though quite time-consuming and requiring some sacrifices, is to focus on real estate from the secondary market. It may happen that someone will want to sell a house or flat for a lower price than its real market value. The bank may assume that the difference in the sale price and the market price will be our own contribution. If you want to use this option, you should commission a real estate appraiser. You also need to find a bank that will agree to external estimates.

Mortgage loan without own contribution. Summary

Mortgage loan without own contribution. Summary

As you can see, bypassing the rigorous rules for granting a mortgage is ultimately not so difficult. You have to be a bit overlapping, but if you want to avoid your own contribution, which currently many people simply can not afford, it is possible. All you need to do is choose the one that suits you best.