22:15 24 August 2026
Property sales influenced by needs of banks
A property sale can fall through even after a buyer and seller agree on the price if the bank values the property at a lower amount. With mortgage-financed purchases, banks base lending limits on the value they accept as collateral, not simply the agreed transaction price. For example, if a home costs PLN 700,000 but the bank values it at PLN 620,000, an 80% LTV would limit the mortgage to PLN 496,000, forcing the buyer to provide PLN 204,000 in cash.
If the buyer cannot cover the gap, renegotiate the price, provide additional collateral or obtain financing elsewhere, the transaction may fail. Rising mortgage activity makes bank valuations increasingly important for housing transactions.
