Mortgage loans

  • Annex

    Change of contractual terms and conditions made in written form. Annex shall be signed if the Borrower e.g. changes the loan currency, prolongs the lending period etc.

  • Appraisal document

    A document containing information on the value of real estate and prepared by a licensed real estate valuer included in the list from the Polish Federation of Valuers' Association


  • Assignment of rights

    Transfer of rights of the Borrower to another person e.g. the Bank

  • Credit worthiness

    Ability to repay the loan amount along with interest rates in time and amount due.

  • Currency conversion

    Change of loan currency during the lending period

  • Downpayment

    Downpayment is the result of substraction between investment cost and the loan amount

  • Final collateral

    Loan collateral intended to be valid throughout the whole lending period. Final collateral of Millennium mortgage loan is final entry of the first mortgage on a residential real estate entered in favour of Millennium.


  • Fluctuation band

    Deviation (+/-) from the reference rate appropriate for the loan currency, expressed in percentage points, going beyond which results in a change of the interest rate


  • Grace period

    Period when the Borrower repays just interests on the loan disbursed. Typically grace period follows first tranche disbursement and lasts until repayment of the first principal-interest installment. From then on the Customer repays instalments comprising the principal and interests. Maximum grace period in Millennium is up to 24 months. 


  • Installment

    Total amount of principal and interest or interest-only payment (during the grace period) due for a given settlement period 

  • Interest rate

    Rate, according to which interest is calculated on the loan amount. Mortgage interest rate comprises a reference rate and the Bank's margin. Bank Millennium offers mortgage loans with variable interest rates. Interest rates change each 3 months.


  • Investment control

    An opinion about the real estate subject to financing, given by an authorised Millennium staff member, holding a relevant building construction license or by an external company acting upon the Bank's order on the basis of an analysis of investment costs, investment progress, commitment of downpayment by the Borrower and compliance with building regulations.

  • Lending period

    Loan repayment period

  • Loan tranche

    Part of the loan amount granted put at the Borrower's disposal in time and amount indicated in the Borrower's disbursement order, upon approval of the Bank.


  • LTV (loan to value)

    A ratio describing the relation of loan amount against the value of collateral real estate.


  • Margin

    Fixed value expressed in percentage points, established by the bank and being a constituent (along with the reference rate) of interest rate. The margin depends on loan purpose, loan amount and loan amount against the value of collateral real estate. The margin is fixed throughout the whole lending period.


  • Maximum mortgage

    Debt collateral in an unspecified amount, determines maximum level of liability. Maximum mortgage is established, when it is impossible to determine precise value of liability, e.g. in the case of F/X loans where future foreign currency exchange rate is unknown.

  • Mortgage

    A form of loan collateral, limited property law established by the Borrower and the Lender by way of mortgage register entry (in section IV). Mortgage expires together wit debt it secures, upon its final repayment. The Borrower remains the owner of real estate, while the Bank has got the right to dispose of it when it is entitled to satisfy its claim.

  • Mortgage refinance

    A loan intended for repayment of a mortgage loan you have with another bank

  • Mortgage register

    A registry regarding the legal status of real estate. Information it contains concerns the location, ownership rights, perpetual usufruct and limited property rights, such as mortgages, usufruct, easements, mortgage or co-operative ownership right.

  • Real estate appraisal

    Appraisal document - written opinion on the value of the property made by the appraiser in accordance with applicable law and applicable professional standards. Within the valuations of real estate accepted as collateral, prepared at the request of both the bank and provided by customers, the bank shall check the credibility and reliability of assumptions and market parameters adopted for valuation purposes.

  • Risk commission

    fee charged by Bank until final entry of the first mortgage on a residential real estate in favour of Millennium is entered.