How to take a loan for an apartment without a down payment?

You dream of “living on your own”, you have already calculated your creditworthiness and you know that you can afford a mortgage. Have you thought if your savings will be enough to cover your own contribution?

Learn how to take a mortgage without a down payment.  


Until quite recently, banks granted mortgage loans to their clients without the required own contribution.

However, when in 2014 the Good Finance Investment Corporation introduced the Good Finance Bank, the threshold for borrowers to have a minimum own contribution increased by 5%. per year (up to the current level of 20%). As you can easily count, with real estate prices we should have around 30-80 thousand in our pocket. zł.

Sounds terrible? Fortunately, even if you have not managed to accumulate adequate savings, you do not have to give up the dream of your own apartment. There are ways to convince the bank to give you a mortgage anyway.

Loans without own contribution – that is, with the family, preferably not only in the photo

A cash donation can effectively supplement a missing own contribution. It is best if the donor is a person close to us (parents, spouse, grandparents, siblings) because they are in the first tax group, where the amount exempt from tax can be as much as 19 274 USD.

Remember to write down the donation agreement!

Any donation, even this one, from a loved one is subject to inheritance and donation tax and requires notification to the tax office.

A mortgage with a low down payment?

A mortgage with a low down payment?

In some banks, you can count on 10 percent. own contribution provided that you take out additional insurance. In practice, if you decide on such a solution, you will pay a higher monthly installment until the loan balance drops below 80%. property values.

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The loan balance is the amount that the borrower must pay back to the bank (without interest). In addition to the amount borrowed, the balance of the loan may include other fees, such as insurance or commission.

Low own contribution? Use the funds accumulated on your retirement account


Some banks are willing to qualify the money you put aside under GFI and GFIC as a substitute for own contribution. To use this option, you do not have to withdraw the accumulated funds – the bank will secure the accumulated funds up to the amount needed.

It is important that the agreement with the bank does not assume that the accumulated funds will be used to repay the loan. Premature liquidation of funds from a retirement account is associated with the need to pay a commission and any income tax and capital gains tax.

Low own contribution and a flat from the secondary market

Many financial institutions are willing to accept the difference between a property valuation and purchase price as their own contribution. However, in this case, banks, despite everything, expect to pay 10 percent. own contribution, which is calculated either on the purchase price or on the valuation value (depending on which of these amounts is lower).

Low own contribution and security with another property

If you already have another flat or property, the bank may accept it as your own contribution. If you do not own your apartment, nothing prevents the bank from accepting a property that belongs to another person close to you. Remember that it is not enough just to enter in the mortgage of the owner, but he will have to take the loan with you.

Low own contribution – plot for the construction of a house

There are banks that include a plot of land where your future home should stand as required own contribution. Importantly, the value of the plot must be confirmed by an appraiser, even if the price is listed in the notarial deed.

The bank will take into account the value of the plot and the cost estimate, i.e. determine the future value of the property. In practice, when building a house, an appraisal will be required. If the plot is worth 150 thousand USD, this amount will be accepted as own contribution.

Low own contribution and funds for the renovation

The bank may also count on your own contribution that you have accumulated for the renovation of your new apartment. How does this work in practice? The value of the property will be the sum of its price and the cost estimate of the planned works – on this basis the bank will calculate, among others, the required amount of own contribution.

Good Finance Mortgage Help from government programs

Until the end of January 2018, it was possible to submit an application in the government’s “Apartment for the Young” program, thanks to which people who met certain criteria did not have to worry about their own contribution.

Most lovely, at the beginning of 2019, the “Individual Housing Accounts” program will be launched, which will have the task of facilitating the financing of the purchase of an apartment or the construction of the real estate.

At the moment, the details of this program are not yet known, but we will definitely follow this project on a regular basis.

If you are interested in a mortgage and are looking for the perfect apartment on the secondary market or on the primary market, read the texts from the 7 steps cycle to the perfect apartment.

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