The issue of loans in dollars, which many Poles concluded on very profitable terms, was widely heard. After some time, the rate of this currency went up significantly, and with it installment obligations. Therefore, foreign currency loans began to be approached with much greater suspicion.
In addition, from 2014, according to the recommendations of the Polish Financial Supervision Authority, loans can only be taken in the currency in which you earn. Credit for a foreigner, so a Pole working abroad Polish, but still appears in the offers of many banks. In what currencies is it the most profitable to take a mortgage?
Mortgage in dollars despite earning abroad
If we work outside Poland, and yet we care about a USD loan, we have two solutions. We can take a loan together with a borrower earning in USD – this will, however, involve the need to make a higher own contribution as well as a higher interest rate.
The second solution is to agree with the bank that the loan will be taken in a different currency, but will be repaid in USD at the current exchange rate. However, this involves some risk. Although a sudden increase in currency value, such as that of the Swiss franc is rare, it still cannot be ruled out. Therefore, if the course is favorable, we will use it, but it can change at any time.
Loans in dollars
If we earn in one of these currencies, we can successfully take out a loan in Poland. We will repay it directly in the selected currency. This will avoid the risks associated with dynamic changes in their course. However, this solution also has its drawbacks. Usually, banks require a larger down payment for foreign currency loans, and offer lower loan amounts and a shorter loan term. The interest rate may be more attractive for this) compared to loans in USD).
In addition, income requirements are very high. We will also have to prepare for a large number of formalities. You can not do without an income certificate, as well as a copy of the employment contract and bank statement. Depending on the bank, we may also need to provide our credit history from the local counterpart of the Credit Information Bureau.
The currency in which the mortgage is most profitable depends on a large number of factors. It is important what our plans are (if we want to return to Poland soon, paying off loans in foreign currency over the next years can be burdensome), and whether we are ready to take the risk of changes in exchange rates. However, it cannot be denied that credit to a foreigner can still be a viable option in some cases.