Creditability in Poland - how do the banks calculate it?

One of the most important aspects of getting the mortgage, or any other loan, is your creditability. What is it and how do the banks calculate it?

Creditability is simply a number - it's a number that the bank believes you can repay without the risk of default. Many factors decide about your creditability, not only your income but also your work or business situation and even your private life.

The first and most important factor of creditability is the customer's income. In the post about the initial payment, we mentioned KNF - Financial Supervision Authority. So the same FSA decided that the maximum DTI (debt-to-income), which is how much of your net income can be allocated to cover your bank obligations, cannot surpass 65%. Hence, while simplifying greatly, you can say that 65% of your monthly income, minus any bank obligations you already have and multiplied by 360 months is the maximum you can get from the bank for your mortgage.

But, at the end of the day bank's analyst takes many more factors into account when calculating your creditability.

Your work situation is of great importance here. Banks will ask how long you are working for your employer and on the position you have, a type of your agreement, and even the size and reputation of the company you work for. And much, much more than that, especially when you earn abroad.

It gets even more complicated when the source of your income is your own business. Bank analyzes your financial documents in detail, you might be asked for invoices, contracts, explanations. While employees tend to be categorized by the banks, the business customer is always treated individually.

Given your income situation is shaped by many factors, there are also many ways to improve it. For your application to be successful, this should be done before you apply.

Lastly, the bank looks at your life situation. Even your marital status makes a difference. Especially important here is the number of people in your household, in other words, how many people are dependant on your income, so your kids and partner, in case they don't have their income. Bank will take this into account when calculating your creditability as well.

As you can see, it is not easy to determine your creditability and even less easy to know what to do to increase it without professional help. If you already decided you want to buy property in Poland and wish to use the mortgage as a way of financing this purchase, feel free to query us to calculate your creditability. Then later, after you already found the flat or house of your dreams, we will be happy to guide you through the whole bank procedure.

Best regards,
Loan-brokers Team

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