Own contribution when taking out a mortgage can be a big plus. Hardly anyone can afford to buy a house or flat for cash; most of us have no other option but to go to the bank and get a loan – usually a mortgage. Satisfactory income is not enough to receive it. Banks also require our own contribution.

Own contribution when taking out a mortgage

Own contribution when taking out a mortgage

Simply put, own contribution is the financial resources we already have and to which we have to choose a loan to get enough money to buy a flat or a house. Let’s say our dream M3 is to cost PLN 200,000. We have already collected PLN 40,000 on our account. So we will go to the bank for the missing PLN 160,000.

Own contribution is not voluntary – it is obligatory if we want to borrow money from the bank to own premises. What amount must it be?

Own contribution 2018

The required amount of own contribution in 2017 was in practice from 10% to 20% of the investment value. Banks financed from 80% to 90% of our purchase project.

What is the amount of own contribution expected for 2018? Formally 20%, which is the same as in 2017, but some banks still offer mortgage loans, for which 10% or 15% are enough.

What does own contribution give?


Own contribution primarily reduces the amount and cost of the loan. After all, the less we have to borrow, the less we will have to pay back, right? For the same reason, it is even recommended (unless time is urgent) to wait with the decision to take out a mortgage until we collect the largest possible own contribution for us.

When we compare the offer of the same bank for two amounts: with a smaller and larger share of our outlays, we can easily see how the mortgage repayment costs change. The more we give ourselves, the less we will have to return to the bank later.

The own contribution is therefore meant to make our mortgage more secure and profitable: thanks to it, the loan installment will be lower, and therefore it will be easier to pay back!

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