In short
For a 600,000 zł flat with a 20% down payment and a 25-year mortgage at 5.24%, borrowing pays off only if your cash earns more than about 5.71% a year before tax. Polish deposits and treasury bonds from the November 2026 offer pay on average 3.75% to 4.58%, so paying cash wins with each of these safe options.
How the comparison works
With cash you pay the full price and every month invest an amount equal to the mortgage instalment. With a mortgage you pay the down payment, invest the rest of your cash at once, and pay the instalment from your income. We compare your savings after tax (19% capital gains tax, podatek Belki) at the end of the loan term. You own the same flat in both cases.
Example: a 480,000 zł mortgage over 25 years at 5.24% means an instalment of 2,874 zł and 382,067 zł of interest in total.
Cash or mortgage with Polish deposits and treasury bonds
| Where you invest | Average a year | Cash | Mortgage | Better |
|---|---|---|---|---|
| Bank deposit | 4.00% | 1,325,514 zł | 1,077,819 zł | cash by 247,696 zł |
| ROR treasury bonds (1 year) | 3.75% | 1,288,365 zł | 1,024,748 zł | cash by 263,618 zł |
| DOR treasury bonds (2 years) | 3.90% | 1,310,496 zł | 1,056,269 zł | cash by 254,227 zł |
| TOS treasury bonds (3 years) | 4.40% | 1,432,195 zł | 1,256,872 zł | cash by 175,323 zł |
| COI treasury bonds (4 years) | 4.19% | 1,354,645 zł | 1,119,977 zł | cash by 234,667 zł |
| EDO treasury bonds (10 years) | 4.58% | 1,466,182 zł | 1,310,321 zł | cash by 155,860 zł |
Savings after 25 years. Details
Rate: the lowest mortgage rate in our comparison of Polish banks, fixed for the whole period, no bank fee. Bonds: Ministry of Finance offer for November 2026, renewed at maturity.
When a mortgage makes sense although you have the cash
- You keep a safety cushion. Savings for 3 to 6 months of expenses protect you if you lose your job or fall ill.
- You plan a renovation. The cash for finishing the flat stays on your account, and a mortgage is usually cheaper than a consumer loan taken later.
- You can repay early. A Polish mortgage can be overpaid at any time. With a variable rate the bank may charge a fee only in the first 36 months, at most 3% of the amount.
Costs a mortgage adds
With a mortgage you also pay for the property valuation, the court fee for entering the mortgage in the land register, the tax on establishing the mortgage, the insurance the bank requires and any bank fee. The notary fee for the sale and the purchase tax are the same in both cases; with a mortgage the notary also charges for establishing it. On the Polish page you can enter your own price, rate and fee.
Frequently asked questions
Does it pay to take a mortgage in Poland if I have the cash?
Only if the cash you keep earns more after tax than the mortgage costs. In the example above the break-even return is about 5.71% a year before tax. The highest safe rate today is 4.58% (EDO treasury bonds, average when held to maturity).
Is a bigger down payment better?
Without a bank fee the break-even return hardly depends on the down payment: about 5.71% with 50% and about 5.71% with 20%. A bigger down payment lowers interest, the instalment and the risk of rising rates, and in some banks the margin. A smaller one leaves more cash for a cushion.
Can I take a mortgage and repay it with cash later?
Yes. You can overpay or repay the whole mortgage at any time. With a variable rate the bank may charge a fee only in the first 36 months, at most 3% of the repaid amount, and many banks do not charge it. With a fixed-rate period the agreement sets the rules.
Sources
- Ministry of Finance: savings treasury bonds offer (Polish)
- KredytPolska: cash or mortgage 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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