What you gain

Debt Consolidation Loan in Bank Millennium offers convenience and financial freedom:

  • 0% commission for granting the loan and earlier repayment (APR 10.07%)
  • one convenient instalment instead of many
  • flexible repayment period, from 3 to 30 years
  • financing up to 80% of property value
  • credit holidays once a year
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Cost of loan and legal note

INFORMATION

From 1 March 2023 we suspend the offer of mortgage loans with variable interest rate options for the entire life of the loan.

Mortgage loans with a periodically fixed interest rate for the first 5 years remain in our offer.


We are working on the implementation of a new mortgage loan offer based on the WIRON reference index.

Information about theWIRON benchmark

On September 27, 2022 on the website of the Polish Financial Supervision Authority the so-called Roadmap was published, which defines the basic assumptions of the process of replacing WIBOR and WIBID benchmarks with the WIRON index (Warsaw Interest Rate Overnight).

The Roadmap was developed and agreed upon by the so-called National Working Group on Benchmark Reform ('NGR'). The Group is made up of representatives of:

  • Ministry of Finance
  • National Bank of Poland
  • Polish Financial Supervision Authority
  • Banking Guarantee Fund
  • Polski Fundusz Rozwoju
  • Warsaw Stock Exchange
  • Krajowy Depozyt Papierów Wartościowych
  • Banku Gospodarstwa Krajowego,
  • GPW Benchmark S.A.
  • banks
  • investment funds
  • insurance companies
  • and industry organizations associating financial market entities.

According to the Roadmap Schedule, the process of replacing WIBOR is to be spread over time:

  • from December 2022 banks may offer new financial products based on the WIRON benchmark, in parallel with products based on the WIBOR benchmark,
  • by the end of 2023, WIRON is to be gradually introduced into new contracts and financial instruments,
  • by the end of 2024 the benchmark revision process is to be completed. If this happens, after this time, mortgage loans based on WIBOR will not be available,
  • from the beginning of 2025 the WIBOR benchmark is to cease to be published.

This process is very complicated. There are many related elements in it. For this reason, the Roadmap and the dates indicated therein may change.

You can find the Roadmap here.link otwiera się w nowym oknie


More information about the planned replacement of the WIBOR benchmark by WIRON can be found at following websites:

  • Can you now take a mortgage from us based on the WIRON index

    Currently, we do not offer mortgages with interest rates based on the WIRON benchmark. Preparation of systems and operational processes in banks takes time. In our bank, we are working intensively on adapting IT systems, regulations and documents that will allow us to introduce the WIRON benchmark as soon as possible.

    We will inform you in advance about the date of introduction of WIRON.

  • How we will replace the WIBOR benchmark in your mortgage agreement with the new benchmark

    If in the future we are no longer able to use the WIBOR benchmark indicated in your contract due to the fact that it will cease to be published by the administrator, we will replace WIBOR in the contract with a new benchmark, in accordance with one of the following solutions:

    • if your contract contains an appropriate contingency clause in the event of ceasing to publish WIBOR - in the manner described in this clause,
    • if your contract does not contain an appropriate contingency clause and the Minister of Finance issues a regulation designating a replacement for the disappearing WIBOR benchmark - we will use the replacement index set out in this regulation (this will probably be the WIRON benchmark).

Collateral

The target mortgage loan collateral at Bank Millennium are:

  • mortgage on residential property entered in the first place in favour of Bank Millennium
  • assignment of rights from the insurance policy against fire and other accidents
  • assignment of rights from the borrower’s life insurance policy with the Bank as the only beneficiary

Property insurance

Life insurance

Remember! The target loan collateral may be also a mortgage on the property other than that financed with the loan, owned by you or a third party.

Documents

List of required documents

  • For filing an application

    • Application for information about the loan Download
    • Documents confirming your identity (ID or passport)

  • Property documents

    • value estimate of the property
    • copy of the entry in the land and mortgage registry- applies to real estate securing the loan

    Additionally, if the loan is secured by a single-family home or by an undeveloped plot of land, the following may be required:

    • final occupancy permit, or – if the former is not required by law – certificate of the completion of the construction along with the information on the lack of objection lodged certified by relevant authorities, or the decision on the amount of real-estate tax
    • copy of the entry in land registry or copy of the survey map
    • certificate of copy from the entry in the local spatial development plan confirming real estate use classification

  • Documents for verification of credit capacity

    • Employment and income certificate Download
    • Employment and income certificate (English version) Download
    • Extracts from the current account for the period of the last 3 months

Price list and regulations

If you are interested in our offer
please fill in the form below - we'll call you back.

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Call:

+48 22 598 40 60

Monday–Friday 8:00–20:00

Cost of loan and legal note

APR for periodically fixed interest rate

The Annual Percentage Rate (APR) for a mortgage loan with a periodically fixed interest rate is 10.07% and we calculated it with the following assumptions: the total amount of the mortgage loan (excluding loan-financed costs) is 259,750.60 PLN, loan period 21 years, loan instalment 2,237.66 PLN, number of instalments 262, interest rate in the first 60-month period of the fixed rate 8.82%, and in the further loan period a variable interest rate of 9.18% (the sum of a fixed margin of 3.35% and the WIBOR 6M benchmark, which as of 30.11.2023 is 5.83%), loan secured by a mortgage on the newly acquired property with a value of 494,763.05 PLN. The 3.35% margin is available if you have a Millennium 360° account with us, to which your salary or other net income is credited every month, and a debit card to this account and you make non-cash transactions with the card in the amount of min. 500 PLN per month. The total cost of the consolidation loan is 362,539.60 PLN, including commission for granting the loan 0 PLN, interest 337,003.49 PLN, real estate insurance against fire and other fortuitous events 9,694 PLN from the offer available through us, life insurance 15,623.11 PLN from the offer available through us, PCC tax 19 PLN and the court fee for establishing a mortgage 200 PLN. Account maintenance cost is 0 PLN. The fee for service of the debit card or BLIK contactless payments is 0 PLN, if in the previous month you pay at least once with the card or by BLIK (if you are aged 18-26) or 5 times (if you are aged over 26). Total amount due 622,290.20 PLN. We made the calculation on 1.12.2023 on a representative example.

Detailed terms and conditions under which we grant mortgage loans are described in the Regulations on Lending to Individuals in Mortgage Banking at Bank Millennium S.A. Fees and commissions that we charge, as well as the interest rate are indicated in the Price List of Mortgage Loan / Home Equity Loan. You can consult these documents in our outlets and on the www.bankmillennium.pl website. Before we grant you a loan, we assess your credit capacity and creditworthiness each time. In justified cases, we may refuse to grant you credit. As collateral for the loan, you can provide real estate insurance or life insurance that is not available through us. You should conclude such an insurance contract with an insurer that is on the list published by the Polish Financial Supervision Authority. We can grant you a loan above 80% LTV (but not more than 90%) only with additional collateral in the form of high LTV risk insurance. LTV is the ratio of the total amount of the mortgage loan to the value of the property that is the subject of the collateral.

Information on risks

Periodically fixed interest rate

In the case of a mortgage loan with a periodically fixed interest rate, there is a risk that during the period of application of the fixed interest rate, your instalment may be higher than if it were calculated on the basis of the current WIBOR 6M reference rate, which is used in the calculation of the variable interest rate. After changing the interest rate on your loan to variable, an increase in the benchmark during the period of the fixed interest rate may cause a significant increase in the principal and interest instalment and thus the total cost of your loan. Furthermore, during the period when variable interest rate is applied there is the risk of increase of interest rate. Its amount depends on the WIBOR 6M benchmark. If the benchmark increases, the interest rate on your loan will be higher and the monthly principal and interest instalment will increase. Then the total cost of the loan will also increase. If the benchmark applicable in a given interest period is zero or negative, the interest rate on your loan in that interest period will be equal to the margin.

Variable interest rate

In the case of a mortgage with a variable interest rate, there is a risk of an increase in the interest rate. Its amount depends on the WIBOR 6M benchmark. If the benchmark increases, the interest rate on your loan will be higher and the monthly principal and interest instalment will increase. Then the total cost of the loan will also increase. If the benchmark applied in a given interest period is zero or negative, the interest rate on your loan in that interest period will be equal to the margin.