Universal Mortgage Loan
Purpose of financing:
- any purpose (excluding funding of business or agricultural activities) and does not require documentation of the use of funds, however, this purpose must be specified in the loan agreement
Loan amount:
- the minimum loan amount cannot be less than 10,000 PLN
- the maximum loan amount depends on the creditworthiness of the applicant and cannot exceed 65% of the market value of the property securing the loan and the amount of 1,070,000 PLN
Loan term:
- from 1 year to 20 years
- the age of the Borrower at the end of the planned loan term cannot exceed 75 years
- possibility of up to 6 months grace period in repayment of the loan principal
Collateral:
The basic, mandatory forms of loan collateral are:
- a mortgage established in the first position in the land and mortgage register for the property being financed / securing the loan;
- an own blank promissory note of the borrowers;
- assignment of rights to the bank from the property insurance policy (does not apply to land properties) securing against fire and other random events, with special consideration of the flood risk;
- indicating the bank as the beneficiary to receive the benefit from the life insurance policy of the borrower up to the amount of the debt resulting from the loan agreement – in case three conditions are met jointly:
1. the loan amount exceeds 80,000 PLN,
2. the sum of the borrower's age and the loan term exceeds 65 years and
3. the borrower is the sole breadwinner of the family (the person exclusively supporting family members); - if it is not possible to establish a mortgage before disbursement of the loan, the borrower is obliged to establish transitional collateral for the loan, which may consist of:
1) a guarantee according to civil law by a person meeting the requirements set by the bank for the borrower,
2) a cash deposit,
3) a block of cash on a bank account,
transitional collateral will be released the day after the bank receives information on the establishment of final collateral, including after receiving an up-to-date excerpt from the land and mortgage register with a lawful entry of the mortgage established in favor of the bank on the property securing the provided loan.
The loan disbursement is made in a non-cash form to the Borrower's account held at the Bank or as a transfer to another bank or in cash if there is no account.
For fixed-rate financing:
Actual Annual Interest Rate (APR) is: 11.79% for the following assumptions: total loan amount: 220,000 PLN, loan term 174 months, fixed interest rate of the loan during the first 60 months: 10.95% per year, and then variable interest rate of 10.75% per year – calculated as the sum of the current base loan rate (variable WIBOR 3M: 5.85%) and the bank's margin of 4.90%, equal monthly installment of 2,527.90 PLN for 5 years, starting from the sixth year subsequent installments will amount to 2,507.97 PLN, total number of installments: 174. Total cost of the loan 221,101.28 PLN, including: total interest over the entire loan period: 217,582.28 PLN, non-loan commission for granting the loan: 1.5% of the granted loan amount being: 3,300 PLN. Cost of establishing the mortgage: 200.00 PLN, Civil Law Activities Tax (PCC): 19.00 PLN. In the total cost of the loan, the Bank does not include the following costs: cost of insuring the financed property and the cost of property valuation, as it is not a provider of these additional services for the consumer. The total amount to be paid is 441,101.28 PLN. The loan interest rate is fixed for the first 60 months, and then variable.
During the validity according to the variable formula, the interest rate of the loan agreement may change in connection with the variable WIBOR 3M reference rate, which may cause the loan servicing costs to increase or decrease. Variable interest carries the risk of an increase in the installment amount, and thus the total amount to be paid.
The calculation was made on March 21, 2025, based on a representative example.
For variable interest:
Actual Annual Interest Rate (APR) is: 11.57% for the following assumptions: total loan amount: 220,000 PLN, loan term: 174 months, loan interest: 10.75% per year calculated as the sum of the current base loan rate (variable WIBOR 3M: 5.85%) and the bank's margin of 4.90%. Equal monthly installment amounts to 2,500.63 PLN, total number of installments 174. Total cost of the loan 218,628.06 PLN, including: total interest over the entire loan period: 215,109.06 PLN, non-loan commission for granting the loan 1.50% of the granted loan amount which amounts to 3,300 PLN, cost of establishing the mortgage: 200 PLN, Civil Law Activities Tax (PCC-1): 19 PLN. In the total cost of the loan, the Bank does not include the following costs: cost of insuring the financed property and the cost of property valuation, as it is not a provider of this additional service for the consumer. The total amount to be paid is: 438,628.06 PLN. The loan interest is variable and during the validity of the loan agreement may increase in connection with the rise of the WIBOR 3M reference rate, which will cause an increase in the amount of the loan installment paid.
The calculation was made on March 21, 2025, based on a representative example.