Down payment when buying a flat in 2018

For several years now, a down payment has been mandatory when applying for a mortgage. What percentage of our own money must we have to start investing in the property market? Find out how large the down payment should be when buying a flat in 2018.

Basic information about a mortgage

In 2017 several changes came into force with regard to mortgages. The most important one from the borrower's point of view was the higher minimum down payment. It then rose to as much as 20% of the value of the premises. The change ensured greater transparency of offers and made it possible to put emphasis on spreading knowledge about the reference rate of the loan. The down payment is intended to protect both parties to the loan agreement. The larger the client's down payment, the more favourable the terms of obtaining the loan will be. The down payment should not come from a cash loan. If you decide on such a solution, you must be prepared for the consequences. Such a provision can be found in the mortgage agreement. These funds may come from schemes such as Mieszkanie dla Młodych (Flat for the Young).

READ ALSO: THE WHOLE TRUTH ABOUT MORTGAGES!

Down payment when buying a flat in 2018: will there be changes?

Since 2014, when the down payment became mandatory, the set amount has steadily increased. Our clients often ask us whether the down payment when buying a flat in 2018 will also change. In this matter nothing is changing. The minimum down payment has remained at 20% of the value of the flat or house. At the moment mortgages have reached a very low interest rate. It is worth paying attention to this and taking advantage of the current favourable conditions.

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Individual Housing Accounts

A new government programme has appeared that should make it easier for Poles to obtain a down payment. IKM, that is, Individual Housing Accounts (Indywidualne Konta Mieszkaniowe), are intended for accumulating savings for housing purposes. The initiative is exempt from the Belka tax (tax on capital gains). The programme is aimed at everyone; there are no age restrictions. However, only some people will receive subsidies: families with children, young people, people buying their first property and those most in need. The money can be used for purposes such as: building a house, buying residential premises or land, buying shares in a housing cooperative, or a down payment for a TBS (social housing association) flat.

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