Loan to build a house

Make your dreams of your own home come true today!

This type of loan is intended for people who want to build their own property.
A home construction loan is different from a regular real estate loan. The main features include the so-called hello construction. It can last up to 3 years. This is the time when the investor - that is you, receives the money and carries out the next stages of construction.

Kredyt na budowę domu: Usługi

Building your own home can be a costly process, especially due to the required regular payments to contractors. With a mortgage, you'll have to pay monthly installments, which will depend on your budget and the size of the project. Therefore, it's crucial to obtain the best possible bank financing. Below are the steps to prepare and submit your application, how the decision is made, and what happens next.

PURPOSE OF THE LOAN

the cost of developing the plot, the cost of construction works and materials,
costs of investment preparation (costs of geological surveys, costs of developing technical documentation, costs of preparing the site for construction) and construction insurance fees,
real estate broker cost,
costs related to the transaction, including, among others: tax, notary and court costs (actually incurred or in accordance with the client's declaration),
cost of finishing works,
the first fee for perpetual usufruct of land,
the cost of the appraisal made by a property appraiser.
real estate development
renovation of the property

In the case of granting a loan for construction on a construction plot already owned by the client, the cost of the investment is the market value of the plot on which the investment is carried out, as entered by the client in the application. The final value of the plot is determined based on the estimate of a property appraiser. The value of the plot may also be the customer's own contribution.

The bank credits the investment if the funds from the loan or the loan together with own share enable the completion of the investment or bringing it to a condition that allows for the settlement or use of the property. Completion of the investment or bringing it to a state allowing for the settlement or use of the property should take place not later than within 36 months from the date of concluding the loan agreement. As soon as the Bank has obtained appropriate explanations regarding the impossibility of completing the investment and there were no other contraindications to extend the above-mentioned period, it is allowed to extend it.

Loan amount

Up to 100% of the construction cost

Loan payment

One-off or in tranches

Repayment period

Even for 35 years

Construction cost estimate required for a home construction loan

When you're looking for a mortgage to build your dream home, it's important to start by estimating the costs.

Before applying for a mortgage loan to build a house, determine how much you need – a project cost estimate is one of the documents you should include with your bank application. A construction budget will allow you to prepare for all the costs that may be associated with the construction process and can provide a clear picture of how much it will cost to complete the project. To prepare an accurate construction cost estimate, the total of all costs should be divided into four main groups:

purchasing the project and completing the formalities before starting construction,
open shell,
closed shell,
finishing the house.

Useful documents

Construction cost estimate forms

List of needed documents

The contract concluded with a construction company for the implementation of the investment along with a work schedule, if the construction is carried out by the General Contractor
The cost estimate prepared by the Applicant or the Appraiser along with the schedule (Bank's form)
Final building / extension permit (if applicable) or Notification of construction works submitted to the office
Log building
Approved construction design (pages with a technical description, including: a list of areas, plans and elevations)
The decision on building conditions and land development and the development plan for the building plot on which the investment in question is carried out, with confirmation from the Office that it is attached to the building permit
Extract and extract from the land and buildings register
Current copy of the Land and Mortgage Register

Sources of income

Acceptable

Contract of employment
Replacement employment contract
Management contract
Appointment
Contract of mandate
Contract for specific work. Rent. Rent. Retirement
Pension. Pre-retirement allowance
Economic activity
Dividends
Scholarship
Farm
Departments of special agricultural production
Pursuit of the profession of a seafarer
Income from the provision of pastoral service

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Unacceptable

Unemployment benefit
Care, educational, rehabilitation and sickness allowance
A pension for a period shorter than the loan period
Profits from the sale of shares
Agreement for a trial period
Contract for the duration of the work
Income per role in the case of leased land
Income from activities carried out abroad
Child care benefit 500+
Employment when the applicant is on notice or on parental leave
Income from the company in which the applicant acts as a limited partner
Future income
Other benefits that are not of a permanent nature

Positive loan decision for building a house

Once a positive credit decision is made, you must sign an agreement with the bank and begin the construction financing process. Funds for the project will be paid in installments to meet ongoing funding needs. This is done according to the payment schedule attached to the loan application. To release the next installment, it is usually sufficient to provide photos documenting the work progress. Some banks verify the information based on a bank employee's visit to the construction site.

Your benefits

Completely free of charge

You will not pay anything for help in obtaining financing

You will save money

Objective comparison of banking offers

You will gain extra time

You will submit applications to several banks at one meeting

Security

Applications to several banks at the same time

You pay the installment only on the tranche paid for the construction of the house

When building a house, you are obligated to pay interest only on the amount you withdraw. The remaining loan balance remains "suspended." This means the money is waiting for you in the bank, but it will only be disbursed after each stage is completed. As construction progresses and subsequent installments are released, you begin to pay increasingly more, until you have paid the entire house in full. Full repayment is contingent upon the final installment and completion of all other work. This will be a specific date set in the loan agreement. From this point on, everything proceeds as with a "traditional" mortgage loan. This means you receive a repayment schedule, which you can then review and continue making monthly payments.

Loan for building a house - the most common mistakes

Incorrect cost estimation: It's common for homeowners to underestimate the cost of building a home. They may neglect to factor in additional costs, such as taxes, insurance, permit fees, or unexpected construction issues. Before starting construction, it's a good idea to consult with experts to accurately estimate all costs.
Poor creditworthiness analysis : Many investors may overestimate their creditworthiness and take on too much debt. Before deciding on a mortgage, it's important to carefully analyze your income, expenses, and financial obligations. It's a good idea to consult a financial advisor who can help you establish a realistic budget.
Misunderstanding loan terms: Investors often don't pay enough attention to reading and understanding loan agreements. They may be surprised by the installment amount, interest rate, early repayment penalty, or other terms. It's important to read the agreement carefully and seek legal advice if anything is unclear.
Too low a down payment: Many people opt for a minimum down payment to minimize their initial outlay. However, a low down payment translates into a larger loan amount and higher financial costs in the future. It's advisable to have an adequate down payment to reduce financial risk.
Misunderstandings with contractors: Often, building a home involves multiple contractors and subcontractors. Mistakes can result from a lack of clear communication and agreements regarding the scope of work, costs, and schedule. It's important to have written agreements with each contractor and communicate regularly to avoid misunderstandings and delays.
Lack of financial reserve: Building a house is usually a lengthy process and full of surprises. Unforeseen costs, technical issues, or design changes can arise. It's worth having a financial reserve to cover these situations to avoid problems related to a lack of funds for further construction.

Remember that every case is different, so it is always worth consulting a credit expert before deciding on a home loan.

Why is it worth seeking the help of a loan specialist when applying for a home construction loan?

Ocena zdolności kredytowej

Specjalista kredytowy przeanalizuje Twoją sytuację finansową, aby wstępnie ocenić zdolność kredytową. Na podstawie tych informacji pomoże oszacować możliwą wysokość kredytu, przewidywane raty miesięczne i przedstawi warunki, które mogą być dla Ciebie korzystne.

Porównanie ofert bankowych

Dzięki współpracy z wieloma instytucjami finansowymi, specjalista kredytowy może zaprezentować i omówić różne dostępne oferty kredytów na budowę domu. Bierze pod uwagę oprocentowanie, prowizje, okres spłaty i inne istotne warunki, by pomóc w świadomym wyborze.

Dobór strategii finansowania

Na podstawie Twoich możliwości i planów, specjalista zaproponuje rozwiązania dopasowane do Twojej sytuacji. Uwzględnia etapy budowy, potrzebny wkład własny i harmonogram wypłat środków.

Przygotowanie dokumentacji

Proces ubiegania się o kredyt na budowę domu wiąże się z koniecznością skompletowania wielu dokumentów. Specjalista pomoże Ci zebrać i uporządkować wymagane dokumenty, takie jak zaświadczenia o dochodach, PIT-y, kosztorysy, pozwolenia na budowę czy umowy z wykonawcami.

Wsparcie w kontakcie z bankiem

Specjalista kredytowy pośredniczy w kontaktach z bankiem, przekazuje dokumenty, uzupełnia wymagane informacje i na bieżąco informuje o statusie sprawy. W wielu przypadkach może negocjować niektóre warunki formalne lub techniczne.

Pomoc na każdym etapie

Od pierwszego spotkania po uruchomienie środków – specjalista służy pomocą, wyjaśnia kolejne kroki, odpowiada na pytania i dba, aby cały proces przebiegł sprawnie i bez stresu.

Using the services of a credit expert

(before the entry into force of the Act of 23 March 2017 on mortgage credit and supervision of mortgage brokers and agents, called a credit advisor) can save you time and effort and help you find the best home loan that will be tailored to your individual needs and financial possibilities