Mortgage loan without own contribution

In 2014, introduced by the Polish Financial Supervision Authority, entered into force due to which it became almost impossible to obtain a mortgage without own contribution. We advise on how to bypass your own contribution and get a mortgage despite it

What is the own contribution?

What is the own contribution?

Currently, the minimum own contribution for a mortgage must be 10% of its value (in some banks it is 20%). The higher our own contribution, the better the terms of the loan agreement can be negotiated.

It is worth knowing that soon it may be even more difficult to obtain a mortgage, it is also not said that the amount of the required own contribution will not increase. In addition, we are currently dealing with one of the lowest interest rates in history, which translates into higher creditworthiness of Poles. And it won’t last forever.

If we do not have any own contribution (or anything that could replace it), we will not receive credit at any of the Polish banks. It is understandable that the financial institution must be sure that we can afford to pay back the contract (especially so long-term) it is incurred. In addition, there are additional costs associated with the mortgage, which we will also have to bear as future borrowers. What’s more, with the minimum own contribution we have to take into account the fees that we will have to pay just for this (it can be, for example, higher insurance or a more expensive loan).

How to bypass your own contribution?

Theoretically, the current regulations in the field of granting mortgage loans are primarily to protect the interests of borrowers and make the contracted liability safer and easier to repay. In addition, according to the legislator’s assumption, the need to raise capital is to make us accustomed to the subsequent systematic repayment of installments. Practically, the necessity of having own contribution is particularly problematic for young people who have not yet gained anything.

The tightening of lending policy and the increase in property prices meant that many people gave up their dreams of owning their own home. Wrongly! Although thanks to recommendation , mortgage loans without own contribution have completely disappeared from the market, this does not mean, however, that the necessity of having it cannot be clever (and what is important in a fully legal way). A mortgage loan without own contribution is possible, although we will have to work a bit to get it.

Loan from the developer

Loan from the developer


The easiest way to bypass the need for own contribution is a loan from the developer from whom you intend to buy an apartment. Remember that just as we care about having our own four corners, so the developer wants to sell the premises quickly, hence it is very possible that he will grant us a loan for the required own contribution (this is a practice often used by construction companies).

Some developers also offer intermediation in the process of applying for a loan to people who do not have their own contribution, thanks to which it may turn out to be much cheaper for us than if we had applied for it ourselves. The loan on more attractive terms will translate into a lower, required own contribution. Some home builders also agree to take on some of the loan costs and offer help with the formalities required.

The downside of this solution is the fact that only people interested in buying real estate from the primary market can use it.

Divide the payment into installments or get along with the developer

The most advantageous breakdown of payments for property into installments is the 10/90 or 20/80 system. In the mentioned example, we invest our own contribution and take the loan only after the construction is completed (giving ourselves time to “collect” the missing amount). We can also run only part of the mortgage and until the payment of the remaining tranche we only pay interest on the amount we already use. Thanks to this, we are able to minimize the costs associated with servicing the debt.

If we buy a flat from the primary market, we can also communicate with the developer and agree with him that, e.g. the amount on the property purchase contract will only cover the premises, no garage, balcony, storage room etc. Thanks to this, the preliminary contract concluded may show the amount of 250,000. instead of PLN 300 thousand PLN, which will translate into a lower own contribution.

Secure the loan with another property

Secure the loan with another property


How to bypass own contribution? Secure the loan with another property. Importantly, we can decide to establish a pledge even if we do not own any premises or plots of land. It is enough that the person to whom the given property or land belongs belongs to make it a collateral for the loan (it does not even have to be related to us). For a bank to accept such a pledge, its value must be higher than the required own contribution.

Do you work in a “budget”? Take a loan!

People who are employed in the so-called budget workers or work in a large enterprise, they can take a loan from a company cash register and spend it on the required own contribution. The biggest advantage of this type of financial support is that it is not visible in the debtors’ bases, thanks to which such debt does not reduce our creditworthiness (and this when applying for a mortgage is of great importance).

Another “bonus” is low interest rate and long repayment period, which means that such a loan will not be too much of a burden for the household budget. Unfortunately, only a few can use this solution, hence it is not a popular way to get a mortgage without own contribution

Buy a property at a bargain price

If you are interested in apartments from the secondary market, you can look for someone who sells them far below its market value. When you manage to find such a “gem” (but it is a tedious, time-consuming process and requires some sacrifices), the bank can treat the difference between the market value of the property and the sale price as a missing own contribution. In a situation where we want to use this solution, in order to bypass our own contribution, we must firstly order a real estate appraiser, and secondly find a bank that agrees to such a ‘deal’.

Mortgage without own contribution. Summary

Although mortgages with no down payment have completely disappeared from the market (today no bank will provide such a loan), fortunately, the lack of required collateral can be bypassed. When analyzing the available solutions, let’s consider which of them is the most beneficial for us. Let’s consider not only your current financial situation, but also (if possible) how it may shape in the future.