In short
RRSO (rzeczywista roczna stopa oprocentowania) is the Polish APRC: the whole cost of the loan as one yearly percentage. For 500,000 zł over 30 years at 5.24%, typical extra costs raise it to 6.16%. Life insurance charged on the balance adds the most. If the bank raises the margin instead, the policy is cheaper only when the increase is above 0.35 pp.
What each cost adds to RRSO
A loan of 500,000 zł over 30 years at 5.24%, equal instalments. Each row adds one cost to the loan alone.
| Cost | RRSO | Increase | Total cost |
|---|---|---|---|
| Loan only, no extra costs | 5.37% | – | 492,852 zł |
| + 2% arrangement fee | 5.56% | +0.19 pp | 502,852 zł |
| + valuation and fees 700 zł | 5.38% | +0.01 pp | 493,552 zł |
| + life insurance 0.035% of balance | 5.81% | +0.44 pp | 532,355 zł |
| + property insurance 300 zł a year | 5.45% | +0.08 pp | 501,852 zł |
| + account 15 zł a month | 5.42% | +0.05 pp | 498,252 zł |
| All costs together | 6.16% | +0.79 pp | 557,455 zł |
An illustration with the interest rate unchanged to the end, as banks calculate it in the representative example. Costs in your offer may differ.
The bank’s policy or a higher margin
Banks often let you choose: life insurance from the bank, or no policy and a higher margin. With these figures the policy costs 39,503 zł over the whole term.
| Option | RRSO | Total cost |
|---|---|---|
| With the bank’s policy | 5.81% | 532,355 zł |
| No policy, margin +0.20 pp | 5.58% | 515,254 zł |
| No policy, margin +0.30 pp | 5.68% | 526,542 zł |
| No policy, margin +0.50 pp | 5.89% | 549,288 zł |
A policy on the balance costs most in the first years, a higher margin for the whole term, so with early repayment or refinancing the result can reverse.
How to compare offers
- Use the information sheet. Before you sign, the bank must give you a standard information sheet (ESIS, formularz informacyjny) with RRSO for your amount and term. RRSO in adverts is for a sample loan.
- Look at the gap. The difference between RRSO and the interest rate is the price of the extras. Ask which are required and how the margin changes without them.
- Variable rate. RRSO assumes today’s rate for the whole term. With a variable rate the real cost moves with WIBOR or POLSTR.
Frequently asked questions
What is RRSO on a Polish mortgage?
The annual percentage rate of charge (APRC) in Polish law: the total cost of the loan as one yearly percentage. It includes interest and every cost the bank requires with the loan, such as the arrangement fee, insurance, an account or a card, and the valuation.
Why is RRSO higher than the interest rate?
The interest rate covers only interest, while RRSO adds the other costs. Without any extra costs RRSO is still slightly higher, about 0.1 to 0.2 pp, because interest is charged monthly.
Can I refuse the bank’s life insurance?
Usually yes, but the bank may then raise the margin. Compare the total cost of both options, or bring your own policy from another insurer if it meets the bank’s requirements.
Sources
- Act on mortgage credit of 23 March 2017, art. 5 (ISAP, Polish Sejm)
- KredytPolska: RRSO calculator (Polish)
This guide describes general rules and typical bank practice as of October 2026. Details
It is not legal or tax advice and not a bank offer. Each bank sets its own criteria, and the lending decision is always made by the bank.
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