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Taking A Mortage in Poland - Take it in Euro or Zloty?

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  • 27-09-2007 10:09am
    #1
    Kintarō Hattori
    Registered Users Posts: 14,987 ✭✭✭✭


    Hey Folks,

    I'll be taking a small mortage with the missus in Poland for a one bedroom apartment. It'll only be for about €20,000. My questions is, that seemingly we can decide to take the mortage with a Polish bank in Euro's or Polish Zlotych, so which currency do we go with? I would have thought Euro's as that's the more stable of the two currencies but I don't know much about this kinda thing so I could very well be wrong.

    So do I take the mortage in Euro or Zlotych as €1 is worth about PLN3.8, but it's been falling as of late.

    Many thanks for any help or advice.


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    #2
    dunkamania
    Closed Accounts Posts: 1,803 ✭✭✭dunkamania


    No easy answer.

    If the zloty were to continue to fall then you would prefer to have it in Zloty as your liability would be decreasing relative to your home currency. Are you planning on renting it out,if so it might be better to have it in whatever currency your rent is set in.If its not been rented out,euros might be better as you wont have any changes in your payments due to currency fluctuations.

    What interest rates are you being offered,zloty vs euro?


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    #3
    Hitchhiker's Guide to...
    Registered Users Posts: 3,322 ✭✭✭Hitchhiker's Guide to...


    the zloty has been reasonably stable over the last year: http://finance.yahoo.com/currency/convert?from=PLN&to=EUR&amt=1&t=1y

    I presume they are attempting to keep it within a narrow enough range of the euro.

    If your primary method of paying the mortgage is through euro-based wages, then i'd take out the loan in euro.

    And the opposite if the primary method of paying is through zloty-based income.


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    #4
    Kintarō Hattori
    Registered Users Posts: 14,987 ✭✭✭✭Kintarō Hattori


    Thanks guys,

    To be honest I'm not sure what the rate is at the moment, I need to check that out. The girlfriend and myself both live and work in Ireland, so are paid in Euro's. We do hope to rent it out, and it has good rental potential, but it will only be for a few years.

    So euro's it is!


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