In Polish: Kredyt budowlano-hipoteczny
This is the word you will see in bank documents.
Definition
A construction mortgage (kredyt budowlano-hipoteczny) is a mortgage for building a house that the bank pays out in parts, usually in 3–5 tranches, after successive stages of work. It is based on the design, a building permit or an effective notification, a cost estimate and a schedule. It is secured by a mortgage on the plot where the house is being built.
What it means for you
During construction you usually pay only interest on the part paid out, and the full instalment starts after the last tranche. The bank will not top up if you exceed the estimate, so you need a reserve of your own money. The plot can serve as the down payment, which often makes it possible to build without large cash savings.
Full entry in Polish, with a worked example and sources Work out your instalment
Frequently asked questions
How many tranches does a house construction loan have?
Usually 3–5, depending on the bank and the schedule. Each further tranche is paid out after the completion of a stage is confirmed.
Can the plot be the down payment?
Yes. The bank calculates LTV from the plot's valued worth and the construction costs. If the plot is at least 20% of the value of the whole project, it is usually enough as a down payment.
What if money runs out before construction is finished?
The bank will not pay out more than in the agreement. You cover the shortfall yourself or apply to increase the loan, which requires a new creditworthiness assessment and an annex.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Loan types and programmes”