Polish mortgage instalment rates have stopped rising – see which banks gives the best offers

After several months of rapid increase in mortgage rates, the rates increase has slowed down. In the July ranking, the banks’ offer for borrowers buying an apartment costing 600,000 zloty.

Mortgage loans with fixed interest rates

In just a few months, mortgage loans with periodically fixed interest rates have become the most frequently chosen option by clients looking for financing to buy a property. The reversal of borrowers’ preferences is the result of, inter alia, rapidly rising interest rates, but also a wider availability of “fixed-rate” mortgages from mid-2021.

In the July mortgage loan ranking, we present banks’ proposals for a “two plus one” family living in Warsaw. The choice of profile clients fell on a 55-metre apartment from the secondary market, costing 600000 Zloty.

We assume that borrowers have a total of 13,000 at their disposal every month zloty. A 29-year-old woman is employed under an employment contract for an indefinite period and earns PLN 7,000 PLN net. Her 32-year-old partner has a similar situation, but slightly lower earnings 6,000 PLN per month.

The couple is currently not paying off any loan obligations, and the history of borrowers recorded in BIK does not contain negative entries. We assume that customers are willing to take advantage of additional products in exchange for better loan terms, with the exception of investment products or insurance with equity funds. Therefore, the simulations presented by the banks assume cross-selling.

Cheapest loans with a 20% own contribution

With a standard, 20% own payment, the loan amount is 480000 zloty. Borrowers must then contribute with 12000 PLN of savings. Most institutions propose a 5-year fixed rate period, after which the borrower can choose to switch to a floating formula or a new fixed rate.

The exceptions are Alior Bank and Credit Agricole, in which this period is longer – 7 years. BNP Paribas Bank also offers a 10-year “freeze” period, but for several months it has been serving only existing customers .

Santander Bank, Bank BPS and ING Bank Śląski were at the top of the list. The rates proposed by banks in July do not differ significantly from those announced a month earlier, but it is worth noting that in several institutions they are lower than in June. Double-digit mortgage rates did not become the standard, although in May 2022 it looked like the beginning of a “new era”.

Source: Bankier