Financing residential developers


We belong to the most valued institutions financing housing developer projects.

We provide loans to finance the construction of:

  • housing estates
  • detached and terraced housing estates
  • apartment buildings and residences
  • other housing facilities

Credit terms

Own contribution –25–30% of the project’s total cost, may include e.g. the cost of purchase of land for the investment project and the cost of design works.

Tenor - construction term plus 1 year to sell the units or houses

Basic loan collateral:

  • mortgage entered in the first place in the Land and Mortgage Register maintained for the financed real property
  • a registered pledge on shares in the special purpose vehicle
  • other forms of securing the repayment of interest are acceptable
  • deposits, securities, guarantees of shareholders, sureties

Escrow account
When financing the developer housing projects, mBank Hipoteczny requires that an escrow account be set up for the purpose of depositing funds owned by the developer, including payments made by individual clients. It is used to control all cash flows associated with the project’s financing, thus representing a guarantee of the project’s financial transparency and mitigating the risk involved. Funds deposited in the escrow account bear interest in accordance with the terms and conditions agreed upon with the Bank on a case‑by-case basis.


Project finance

n order to mitigate the risk involved in financing a developer’s project, the Bank prefers the establishment of a special purpose vehicle the business operations of which should be strictly limited to activities linked with the management of the investment project.

The "project finance" formula mitigates both the Bank’s risk and that of the borrower, its main advantages include:

  • separating the cash flows associated with a given project from other cash flows
  • off-balance-sheet nature of the special purpose vehicle’s debt from the perspective of its shareholders
  • higher financial leverage in the project’s financing
  • the fact that in the event of the project’s failure the special purpose vehicle’s bankruptcy does not mean the bankruptcy of its shareholders
  • flexible conditions of use of external financial means