What you gain

Home Equity Loan is a perfect solutions for property owners:

  • 0% commission for loan granting and earlier repayment (APR 7.34%)
  • financing up to 70% of property value
  • for our active Clients we offer margins lower by as much as 0,5% Check it out
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Collateral

The target 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

Until mortgage is established a so-called interim loan collateral is set up. At Bank Millennium a standard interim collateral is a commission for increased risk collected until the mortgage is established.

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

Conditions for margin reduction

Margin reduced by 0,5% for Clients who fulfil the below conditions throughout the credit period:

  • they are holders of personal account at Bank Millennium, to which remuneration or net income are transferred every month, and
  • they are users of debit cards for account at Bank Millennium and perform card transactions in amount of minimum 500 PLN per month.

Cost of loan and legal note

APR FOR VARIABLE INTEREST RATE

Annual Percentage Rate (APR) is 7,34% and has been calculated with the assumption that WIBOR 6M is 2,38% (as of 30.11.2021), variable interest rate is 6,43% and will remain at the level defined for the initial period during the entire period of Agreement duration. The total amount of the home equity loan (net of loan-financed costs) is 156 522 PLN, total amount to be repaid by the consumer 311 542.35 PLN, total cost of the home equity loan 155 020,35 PLN (including: loan approval fee 0 PLN, interest 139 971,98 PLN, fee for increased risk until an entry is made in the land and mortgage register for 6 months 782,64 PLN, fire and other accident insurance of the real property according to the offer available through the Bank 6 210 PLN, life insurance according to the offer available through the Bank 7 836,73, tax on civil law transactions 19 PLN and court charges for setting up the mortgage 200 PLN), loan tenor 22 years, loan instalment 1 098,12 PLN, number of instalments 270. The calculation was made as of 2.12.2021 on a representative example, assuming that: the loan will be secured with a mortgage on a newly acquired real property worth 308 966 PLN, loan margin is 4,05% because the Customer has Konto 360°, subject to monthly payment of the salary or other net income into this account and possession of a debit card with this account as well as making non-cash transactions with this card at least 500 PLN per month. Konto 360° will then be run by the Bank free of charge and the debit card service fee for this account will be 0 PLN.

APR FOR PERIODICALLY FIXED INTEREST RATE

Annual Percentage Rate (APR) is 7,89% and has been calculated with the assumption that the interest rate during the first 60-month fixed-rate period is 6,95% (as of 30.11.2021), while later the variable interest rate is 6,43% and WIBOR 6M is 2,38% (as of 30.11.2021). If at the time of APR calculation the fixed interest rate is higher than the variable interest rate, then the APR calculation after the fixed rate period shall use the fixed interest rate. The total amount of the home equity loan (net of loan-financed costs) is 156 522 PLN, total amount to be repaid by the consumer 325 098,19 PLN, total cost of the home equity loan 168 576,19 PLN (including: fee for loan approval 0 PLN, interest 153 417,68 PLN, fee for increased risk until an entry is made in the land and mortgage register for 6 months 782,64 PLN, fire and other accident insurance of the real property according to the offer available through the Bank 6 210 PLN, life insurance according to the offer available through the Bank 7 946,87 PLN, tax on civil law transactions 19 PLN and court charges for setting up the mortgage 200 PLN), loan tenor 22 years, loan instalment 1 147,93, number of instalments 270. The calculation was made as of 2.12.2021 on a representative example, assuming that: the loan will be secured with a mortgage on a newly acquired real property worth 308 966 PLN, loan margin is 4,05% because the Customer has Konto 360°, subject to monthly payment of the salary or other net income into this account and possession of a debit card with this account as well as making non-cash transactions with this card at least 500 PLN per month. Konto 360° will then be run by the Bank free of charge and the debit card service fee for this account will be 0 PLN.

Fees, commissions and interest rate are specified in the Mortgage/Home Equity Loan Price List. Details regarding principles and conditions of granting loans are stipulated in the Regulations on Lending to Individuals in Mortgage Banking in Bank Millennium S.A. The Regulations and the Price List are available in the Bank’s branches and on the www.bankmillennium.pl. website. Before granting a loan the Bank evaluates the Applicant’s credit capacity and worthiness on a case-by-case basis; in justified cases it may refuse to grant the loan.

The Customer may present, as security of the Bank’s receivables, real property or life insurance - not from the offer available via the Bank - under an insurance agreement concluded with an insurer from the list published by KNF. Granting a loan with LTV (total value of the mortgage loan to value of the real property securing the loan) above 80%, however no more than 90%, is possible only with additional security in the form of high LTV risk insurance.

The fixed interest rate shall remain valid for 5 years. During this period the monthly principal-interest payment of your loan will not change, because it does not depend on change of the benchmark. There is the risk that during the fixed interest rate period your monthly payment may be temporarily higher than if it were calculated on the basis of the current WIBOR 3M reference rate, used as the benchmark in calculating variable interest rate. If during validity of fixed interest rate the amount of maximum interest decreases, the fixed interest rate during this period will not change.

After the 5-year period you can choose to apply periodically fixed interest rate (note: it may differ from the interest rate in the previous period) for another 5-year period (it will be the same in case of subsequent periods) or to apply a variable interest rate. While you were paying instalments of your loan with fixed interest rate, the WIBOR 3M benchmark may have increased. This means that after the end of the fixed rate period your instalment may be higher and thus total cost of the mortgage loan may grow.

Meanwhile during the period when variable interest rate is applied there is the risk of change of interest rates. The risk of change of interest rates means that in case of increase of the level of WIBOR 3M reference rate the interest rate on the loan will be higher; then the amount of the monthly principal-interest instalment increases and this in turn will cause an increase of the cost of interest and thus increase of total cost of the mortgage loan. If the reference rate is zero or negative, the interest rate on the loan during this period shall be equal to the Bank’s margin.