Kacper Porębski, a well -known thicker, expressed the surprise that you have to pay a second so much for a mortgage. – A second as much as a flat costs. I don’t know if it’s normal -. Many Internet users reacted to his video and it turned out that some of them also had no idea about it. “You will take 450,000 and give 900,000? Sick” – wrote one of them.
Poland has the most expensive housing loans in the European Union
that in July 2024 the average interest rate on newly granted loans in Poland was 7.83 percent. Our country took first position in this ranking. Hungary (6.73 percent), Romania (6.56 percent) and the Czech Republic (4.99 percent) occupied subsequent places. In many EU countries, the interest rate remained in the range of 3-4 percent. Why are loans in Poland so expensive? We asked the expert.
– you have to keep in mind interaction between two issues. One concerns the specificity of the Polish mortgage market at least until 2022, and the other concerns what has happened since the end of 2021 – explains Dr. Michał Możdżeń from the Polish economy network in an interview with Next.gazeta.pl. – For many years, Polish banking institutions have not offered attractive loans for a fixed interest rate, which means that at least until 2022. Almost 100 percent loans were on a variable foot. This is the highest indicator in Europe. When we were dealing with inflationary shock and a dynamic increase in interest rates in Poland, loan installments began to grow immediately. The consequence of this was a very rapid increase in the loan installments of people who took them earlier – he added.
This determines that we currently have the highest credit costs. In other countries where a much larger part of loans is to a fixed rate, the reaction to higher interest rates is delayed and a large part of borrowers do not have to pay such high interest
– emphasized our interlocutor.
Let us remind you that interest rates in Poland have been maintained at the level since October 2023 5.75 percent That “We need to postpone discussions about possible interest rate reductions for some time. ” said the head of the NBP.
Dr. Michał Możdżeń from the Polish economy network pointed out that after increases in interest rates in Poland, many borrowers decided to go to a fixed interest rate. – This was often done “on the hill”, so These people will not be able to use it quickly from the upcoming interest rate reduction. However, for borrowers who still have loans with variable rates, foot reductions will sooner quickly translate into lower loan costs – he added.
Very expensive mortgage loans in Poland. What next?
We also asked if we could in the near future count on improving the credit situation in Poland. – The situation on the real estate market in Poland becomes special because Housing prices stop growing and even start to fall. Credit costs for potential borrowers become too high and you can see that the volume of loans is getting smaller. This means that Everyone is waiting for foot reductions. In the case of new loans, a government program could introduce a change, but this in turn will raise real estate prices, without a beneficial effect in the form of reducing the costs of loans previously taken – emphasized Dr. Michał Możdżeń.
Write to the author: dominik.molinski@grupagazeta.pl
Source: Gazeta
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