Mortgage glossary

Transferring to the bank the right to payment under the apartment insurance (for example, against fire and flooding). Most banks require such a policy for the whole loan period – you can buy it from the bank or from an insurer of your choice if it meets the bank's requirements.

A guarantee from Bank Gospodarstwa Krajowego (BGK) which, in the family housing loan, replaces the missing deposit. The programme rules apply, including limits on the apartment price – we check them during the consultation.

More in the article: A mortgage without a deposit 2026 – is it possible and what are the conditions

A database with the history of your loans, repayments, cards and limits. The bank checks it before deciding: on-time repayments help, delays and heavy debt lower your chances. You can download a report about yourself from BIK before you apply.

Security for the bank until the mortgage is entered in the land and mortgage register. For an apartment under construction it usually lasts longer, because the register is opened only after handover. Most often it means a higher margin or an extra premium in this period.

More in the article: Mortgage for a Flat Under Construction in Poland 2026 – Tranches, Interest, Bridging Cover

The bank's answer to your application – positive (with an amount and terms) or a refusal. The Mortgage Credit Act gives the bank 21 days from a complete application, and a positive decision binds the bank for at least 14 days.

More in the article: Mortgage in Poland step by step (2026): from borrowing capacity to tranche payouts

A company or adviser that compares offers from several banks and helps prepare the application. Mortgage credit intermediaries and their agents must be entered in the register of the Polish Financial Supervision Authority (KNF). Our credit advisers are in this register, and their help is free for the client.

More in the article: Mortgage adviser in Poland – is it worth it, what does it cost and who pays the broker

The maximum loan amount the bank can lend you. It depends on income and its source, length of employment, living costs, the number of people in the household, other commitments (including card limits), the loan term and your history in BIK. The bank calculates it with a buffer for interest rate increases.

More in the article: Borrowing capacity in Poland 2026: how large a mortgage on a net income of 5, 7 and 10 thousand zł

The principal part is the same every month, and interest is calculated on the falling debt – the first instalments are the highest, then they go down. In total you pay less interest than with equal instalments, but you need higher creditworthiness at the start.

More in the article: Mortgage instalment on 500, 600, 700, 800 thousand zł over 25–35 years – tables 2026

The part of the apartment price paid from your own funds. Under Recommendation S it is usually at least 10% (then with extra security), and better 20% – with 20% the loan terms are usually better. With no deposit – only with the BGK guarantee.

More in the article: Mortgage down payment in Poland 2026: 10% or 20%, where to get it and what if you are short

An agreement with the developer in the form of a notarial deed: price, payment schedule, handover date and transfer of ownership. An information prospectus is attached to it. The bank pays out the loan in tranches on the basis of this agreement.

More in the article: Polish developer agreement (umowa deweloperska) 2026: contents, pitfalls and costs

A fund financed by developers' contributions from client payments. It protects buyers' money if the developer goes bankrupt or the bank running the escrow account becomes insolvent.

More in the article: Escrow account and DFG guarantee fund in Poland: how your money is protected (2026)

The share of your monthly net income taken by all loan and limit repayments. Banks set internal limits for it under Recommendation S – the lower your DSTI, the higher your creditworthiness.

The instalment stays the same (if the interest rate does not change); only the split between principal and interest changes. The first instalment is lower than with decreasing instalments, so it is easier to get a larger loan.

More in the article: Mortgage instalment on 500, 600, 700, 800 thousand zł over 25–35 years – tables 2026

A period when you do not repay the principal – usually you pay interest only. Banks use it, for example, while the apartment is being built and the loan is paid out in tranches. A grace period lowers the payment at the start but extends the repayment of the principal.

A public court register of real estate: who the owner is and what encumbrances and mortgages there are. You can check a register online for free using its number. For a new apartment the register is usually opened at the agreement transferring ownership.

Extra security for the bank when your deposit is below 20%. The borrower usually pays for it – as a one-off fee or a higher margin until part of the loan is repaid.

More in the article: Mortgage down payment in Poland 2026: 10% or 20%, where to get it and what if you are short

The ratio of the loan amount to the value of the property. With a 20% deposit, LTV is 80%. The lower the LTV, the lower the margin usually is, and there is no extra low-deposit insurance.

More in the article: Mortgage down payment in Poland 2026: 10% or 20%, where to get it and what if you are short

The fixed part of the interest rate that the bank adds to the reference rate – this is the bank's earnings. The margin is written in the agreement and, with a variable rate, does not change during the whole loan, unless the agreement says otherwise (for example, a higher margin until the mortgage is entered in the register).

Security for the loan on the property, entered in section IV of the land and mortgage register. If the loan is not repaid, the bank can recover the debt from the apartment. After repayment, the mortgage is deleted on the basis of the bank's consent.

The annual rate used to calculate interest: usually the bank's margin plus the reference rate, or a fixed rate. It does not include fees and insurance – the full cost is shown by RRSO (APRC).

More in the article: Mortgage Interest Rates in Poland in 2026: Average Rate, WIBOR, Margin, Fixed or Variable

A contract in the form of a document drawn up by a notary. When you buy from a developer, the developer agreement (umowa deweloperska) and – after handover – the agreement transferring ownership are signed in this form. The cost of the deed is the notary fee, VAT and court fees for entries in the land and mortgage register.

More in the article: Notarial deed when buying a flat from a developer in Poland (akt notarialny): what it contains

A payment above your instalment that reduces the principal – you can choose a lower instalment or a shorter term. The Mortgage Credit Act limits early repayment fees, and many banks do not charge them; we check the terms in the agreement before you sign.

More in the article: Mortgage refinancing in Poland 2026 – when it pays off (a calculation)

A tax on some agreements. When you buy a new apartment from a developer you do not pay PCC on the price – the price already includes VAT. PCC applies, among other things, to buying on the secondary market (with a relief for a first apartment on certain conditions) and, with a loan, to establishing the mortgage; the notary collects it.

More in the article: PCC tax on buying property in Poland in 2026: 2%, the first-flat exemption and 6%

A rate fixed for several years (most often 5 or 7) – during this time your instalment does not change even if interest rates move. After that period the bank offers a new fixed rate, or the loan moves to a variable rate.

More in the article: Fixed or variable mortgage interest rate in Poland 2026 – NBP data, WIBOR, repayments

A preliminary promise from the bank that it will grant a loan on certain terms if you provide the missing documents. Not every bank issues one; more often the basis for action is the credit decision.

Rules of the Polish Financial Supervision Authority for banks granting mortgages, including the minimum deposit, a loan term of no more than 35 years and a cautious calculation of creditworthiness.

A short agreement in which the developer takes the apartment off the market for a set time and does not change its price. It usually comes with a small reservation fee. During this time you submit your loan application – the bank often needs this agreement for its analysis.

More in the article: Reservation agreement with a developer in Poland (umowa rezerwacyjna): fee up to 1%, refund and contents

A bank account that receives buyers' payments and the loan tranches. The bank pays the developer only after the next construction stages are completed (open account) or after ownership is transferred (closed account). The account is mandatory with a developer agreement.

More in the article: Escrow account and DFG guarantee fund in Poland: how your money is protected (2026)

The total annual cost of the loan as a percentage: interest, fee, mandatory insurance and other charges required by the bank. It lets you compare offers from different banks – a lower RRSO means a cheaper loan on the same assumptions.

Paying out the loan in parts according to the construction schedule in the developer agreement. You pay interest only on the amount paid out. The money goes to the developer's escrow account.

More in the article: Mortgage for a Flat Under Construction in Poland 2026 – Tranches, Interest, Bridging Cover

A valuation of the apartment prepared by a valuer commissioned by the bank. The bank uses it to calculate LTV. For an apartment from a developer the bank often relies on the price in the agreement and the project documents; the borrower usually pays for the valuation.

Margin plus the reference rate, updated every few months. The instalment falls when interest rates fall and rises when they rise – that is why the bank calculates your ability to repay with a buffer for rate increases.

More in the article: Fixed or variable mortgage interest rate in Poland 2026 – NBP data, WIBOR, repayments

The reference rate on which the variable rate of most loans in zloty depends (most often WIBOR 3M or 6M). It rises and falls with interest rates. A reform is under way – WIBOR is to be replaced by a new benchmark (WIRON / POLSTR).

More in the article: WIBOR, WIRON and POLSTR 2026 – what they are, how they affect your instalment, the reform

New benchmarks based on actual transactions, which are to replace WIBOR under the benchmark reform in Poland. POLSTR has been named as the target (WIRON was planned earlier). When the benchmark changes, the margin is adjusted so that the cost of the loan does not jump.

More in the article: WIBOR, WIRON and POLSTR 2026 – what they are, how they affect your instalment, the reform