How to negotiate better loan terms — guide before signing the contract

Why is it worth negotiating?

Banks don't offer the best terms automatically — the first offer is a starting point for negotiations. A difference of 0.2 percentage points in margin on a mortgage worth 400,000 PLN for 25 years is over 15,000 PLN savings over the entire loan period.

What can be negotiated?

Margin

The margin is a fixed component of the interest rate (WIBOR + margin). This is the most important element to negotiate because it affects the loan cost throughout the entire period. Differences between banks range from 0.3-0.8 percentage points.

Origination fee

Typically 0-3% of the loan amount. Many banks are willing to reduce or completely waive the fee in exchange for cross-sell (account, card, insurance).

Insurance

Banks offer insurance packages: life, unemployment, property. They are often more expensive than policies purchased independently. You can:

• Choose your own property insurance (assignment to the bank)
• Opt out of life insurance offered by the bank
• Negotiate a lower bridge insurance premium

Additional fees

• Early repayment — check if it's free
• Currency conversion, overpayment, schedule changes
• Account maintenance fee for loan servicing

How to prepare for negotiations

Step 1: Gather offers from 3-5 banks

This is your strongest weapon. When the advisor knows you have a better offer from the competition, they are more willing to make concessions. Collect offers simultaneously (within 14 days, credit inquiries count as one in BIK).

Step 2: Improve your creditworthiness

Before submitting applications:

• Pay off small obligations (cards, limits)
• Close unused credit cards and account limits
• Make sure your BIK history is clean
• Prepare documents confirming additional income

Step 3: Calculate the total loan cost

Don't compare just the installment — compare APR (Annual Percentage Rate) and total loan cost. A lower margin with a higher commission might be more expensive.

Step 4: Prepare arguments

• "Bank X offers me a 1.8% margin — can you beat that?"
• "I'm ready to transfer my salary if the margin drops by 0.2 percentage points"
• "I prefer higher margin without commission / lower margin with commission" (calculate what's better)

Negotiation techniques

Don't be afraid to walk away

The strongest negotiating position is the willingness to walk away. The bank wants you as a client — a mortgage is a multi-year relationship and source of revenue.

Negotiate as a package

Instead of haggling over each element separately, propose: "I'll sign the contract today if you lower the margin by 0.15 percentage points and waive the commission."

Use a mortgage broker

A good broker knows current negotiation ranges at each bank and can negotiate terms unavailable to walk-in customers. The bank pays their commission, not you.

Negotiate at the end of the quarter

Banks have sales targets — at the end of quarters and years, advisors are more motivated to close deals.

Refinancing — negotiations after signing

If you already have a loan, you can:

1. Negotiate with your current bank — ask for a margin reduction, citing competition offers
2. Refinance with another bank — transfer the loan on better terms
3. Make overpayments — every overpayment shortens the period or lowers the installment

Refinancing pays off when the margin difference is >0.3 percentage points and >10 years of repayment remain.

How Freenance can help

Freenance includes loans in your financial plan. You'll see:

• How the loan affects your Financial Freedom Runway
• Simulation of overpayment effects on financial freedom date
• Comparison of scenarios: loan overpayment vs investing surplus

👉 Plan your loan repayment with Freenance — freenance.io