If you build a house or flat with a developer,
choose a reliable and a solid developer - check, if:
- their hitherto investments have been successfully completed
- it is possible to sign preliminary agreement in notarial form.
verify developer's reputation with the help of:
- official internet websites
- Customers' opinions available on internet discussion fora and in press clippings
- other sources of information about developers: Polish Association of Developer's Companies and National Court Register
try to learn, if your developer's company:
- did not go bankrupt or was not liquidated
- has got a building permit
- runs its investments dutifully, according to the schedule presented to you.
When you purchase a real estate in secondary market, look into the copy of its mortgage register. You can get it in mortgage department of the District Court suitable for the real estate in question. If you know the mortgage register the contents can view and print using the Subsystem Access to the Central Land Registry Database at:
There you will find out:
- about legal status of the real estate
- if the seller is actually entitled to dispose of it
- if there are no exisitng mortgage entries or personal servitudes in the mortgage register of the real estate - it is significant as most banks, including Millennium, require a collateral in the form of final entry of the first mortgage on a residential real estate and do not accept real estates with exisiting mortgage entries.
Find out what information you can aquire in subsequent sections of mortgage register:
- Section I - basic information about real estate, address data, space, type of buildings, the number of rooms
- Section II - information about the owner/-s and hereditary tenant/-s of the real estate
- Section III - information about limited property laws and limitations in disposing of the real estate (including information on easement appurtenant, i.e. the law set up in favour of a specific person to use the real estate for specific purposes)
- Section IV - information about mortgage entry/-ies - types of mortgage (maximum or ordinary), mortgage amount, currency, the name of lender, expiry of lending period.
It will also be necessary that you provide the Bank with documents re. loan purpose (preliminary agreement of real estate purchase, or cost estimate calculation).
If you buy a house (or renovate a flat), when applying for a loan you will be asked to provide the Bank with a cost estimate calculation. The calculation will then be verified by the Bank or real estate valuer cooperating with Millennium (valuer needs to be included in the list from the Polish Federation of Valuers' Association). Next, based on the calculation the valuer prepares a so-called real estate appraisal - a document which stipulates the value of collateral real estate.
Noteworthy, a benefit of Millennium mortgage is the fact that on calculating the maximum loan amount the Bank takes into consideration prospective real estate value (determined based on the cost estimate). In consequence, it is possible for the Customer to get a loan of up to 85% of the total real estate value (plot of land plus house after its completion and furnishing).
- If the Bank considers your cost calculation to be underestimated, it may ask you to declare extra funds on your own, which together with the funds acquired from the Bank will cover the total investment cost or, alternatively, the Bank may offer you a higher loan amount.
- Similiarly, if investment costs are found to be underestimated when investment is in the process, the Bank may (in justified cases) consider increasing loan amount granted previously by extra funds (upon investigation if the Customer is capable of servicing a higher loan).
- If, in turn, the costs turn out to have been overestimated on preparing the investment, the Customer is always free to resign from a part of the loan. Consequently, they repay lower monthly installments, whose precise amount is dependant on the loan amount factually disbursed.
In Bank Millennium we assume that the time of DIY house construction should last no longer than 30 months. Until the deadline of the investment the Bank disburses subsequent tranches. The maximum period which the Bank provides for the disbursement of the mortgage loan is 24 months. Apart from systematic monitoring and settling up each of the tranches disbursed, we also carry out an investment control and thus verify construction works as well as their compliance with loan agreement.
The basis for the Bank' s loan granting decision is income documents. Based on them the Bank analyses the Customer's credit worthiness and their ability to repay the loan in the long term.
- customers employed based on a contract of specified or unspecified duration typically provide the Bank with employment and income certification - download.
- in the case of Customers who run their own business activity, the Bank will ask them to submit the loan application together with the copy of entry into the register of business activity, certificate of REGON number, annual tax return filed with the Tax Office with respect to the last tax year, as well as with income documents for the current year and confirmation from the Tax Office and Social Insurance Institution of no outstanding payments.
- if the source of your income is other than the ones mentioned above, check the documents which will be required from you in Required documents section.
Remember! On applying for a loan with Bank Millennium, you can add income from a number of sources, e.g. when you are employed based on a contract of specified or unspecified duration, and additionally earn based on Civil Law contracts (e.g. contract of mandate and/or contract to perform a specific task). On top of this, Bank Millennium accepts a wide selection of employment and income sources, including untypical ones, such as sailor's income, real estate rent or lease agreements or income achieved by people holding public offices (by appointment or nomination).
A relatively frequent oversight on the part of the Customers is putting in the loan application incomplete information about liabilities with other banks and financial institutions. The analyst analyses your loan application not only with the help of account statements, bank opinions or loan agreements you submitted, but also with the help of tools such as:
- Credit Information Bureau (Biuro Informacji Kredytowej, BIK)
- Unreliable Debtors Register (Rejestr Niesolidnych Klientów, RNK).
What is subject to verification is not only the number and the amount of liabilities, but also whether their service was timely. Numerous Customers forget or fail to include in the application loans or credit cards they have already had. The necessity to provide additional explanations and to determine what financial products and to what extend the Customer in fact uses, as well as what his/her factual monthly spendings are, may negatively affect not just the time of loan granting procedure, but also its effect (in the case of significant delays in loan service observed hitherto), or loan conditions offered by the Bank (lower credit worthiness).
Your downpayment may include:
- any payments made in advance with regard to real estate purchase
- incurred construction costs
- the value of construction works done
- the value of construction materials collected
- the plot of land where investment shall be located - the value of land shall be determined by the real estate appraiser
- documented costs of investment preparation (e.g. the costs of architectural design, real estate appraisal etc.)
- funds in your bank accounts
- units in investment funds
- any real estate you declare to sell.
Note! The value of construction works done and construction materials collected does not have to be documented with bills or invoices. If the Customer does not hold such documents, it is possible to determine the value of works and materials by way of appraisal carried out by a real estate valuer.
Note! No funds or savings must be subject to blockage in order to serve as downpayment.
Note! In order to take out a loan in Bank Millennium to finance a real estate or any other housing purpose (e.g. a renovation) it is necessary to cover total cost with the loan and your downpayment.
An indispensable precondition for taking out a loan in Bank Millennium is submitting a complete loan application to one of the branches. Before submitting one, you're welcome to visit us to get to know more about the loan granting procedure. We will answer all your questions:
- we will present the Bank's offer to you (e.g. lending period, interest rates, commission fee and other fees)
- we will check if you fulfill basic criteria to apply for a loan, i.a. we will conduct preliminary verification of your credit worthiness and roughly estimate the value of your collateral real estate
- we will inform you about the documents required by the Bank to submit the application (only complete applications are subject to analysis in the Bank).
Upon submission the application is sent together with a complete set of documents to the Bank's head office in order to be analyzed. On making a credit decision the analyst verifies a number of information:
- determines, if your employment and income are stable
- calculates your average net income and your credit worthiness
- verifies other loans and liabilities you hold (with the help of such tools as account statements, Unreliable Debtors Register or Credit Information Bureau) - what is subject to verification is both the amount of liabilities as well as the timeliness of debt service)
- verifies legal status and the value of real estate calculated by real estate valuer by way of appraisal
- verifies if a given real estate may constitute a loan collateral in accordance with the Bank's principles.
In order to avoid inconvenience, before submitting the application reconsider your expectations and inform the staff of a Millennium branch or a Loan Advisor about any aspect of transaction which is to be financed for the funds acquired from the Bank. After its submission any correction of the application or completion of the data included may prolong long granting procedure. Information included in the application must be not only complete, but also reliable - if any data arouses doubts and the Customer is not in a position to provide convincing explanations, the Bank may refuse to grant a loan.
Specimen loan agreement is available on request in all the retail branches of Bank Millennium.
Remember! This document is indicative only. In the case of each Customer an individual agreement is prepared, which includes adequate provisions (e.g. a list of preconditions that shall be fulfilled so that the Bank could disburse the funds provided for by the agreement etc.). It is also possible to receive your individual agreement and look into it before signing it.
Note! Before signing the agreement, check all your personal data. You should pay particular attention to all the provisions stipulating interest rates, commissions and fees associated with the loan, as well as any commitments and declarations you make on signing the agreement.