In Polish: Karencja
This is the word you will see in bank documents.
Definition
A grace period (karencja) is a period in which you do not repay the loan capital, only interest. For a mortgage it is typical while a house is being built or when buying from a developer, usually until the last tranche is paid out. The instalment is lower then, but the capital remains to be repaid in full.
What it means for you
A grace period eases the burden while you are still paying rent or building, but it raises the total cost of the loan. If it counts towards the loan term, afterwards the same capital is spread over fewer instalments and the instalment is higher. Ask the bank whether the grace period is compulsory and how it recalculates the instalment afterwards.
Full entry in Polish, with a worked example and sources Work out your instalment
Frequently asked questions
What is a grace period in a mortgage?
A period in which you pay only interest, without repaying capital. It most often lasts until the last tranche is paid out when building a house or buying from a developer.
Is a grace period worth it?
It lowers the instalment for a while but raises the total cost of the loan, because the capital does not decrease during that time. It makes sense when you are also paying rent during construction.
Does a grace period extend the loan?
It depends on the agreement. If it counts towards the loan term, the loan does not get longer, but the instalment after the grace period is higher. If not, the loan lasts longer by the length of the grace period.
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 “Repayment, overpayment and changes”