Housing loan and the rise in housing prices

  • March 11, 2020

Housing loan in 2020 may not be as easy as it was in 2019. From January to October 2019, Poles took out mortgage loans amounting to nearly USD 55 billion, and the average value of financing granted to one borrower at the end of this period was USD 278,000. USD, which is 5 percent an increase compared to the amounts that were borrowed several months earlier.

Housing loan and the rise in housing prices

Housing loan and the rise in housing prices

This result is largely due to higher housing prices, which force buyers to take loans for higher amounts. The number of people who want to finance the purchase of an apartment thanks to a loan is growing much slower.

In the discussed period, USD 201,000 were granted. mortgage loans, i.e. by 3% more than a year ago. In the last months of 2019, however, increased traffic in this area could be seen. This means that despite rising real estate prices and banks’ tightening credit standards, interest in this method of financing the purchase of a flat remains at a high level.

Despite the fact that for four years the Good Finance interest rates have remained at the same, record low level, most banks changed the parameters of the offers. Mortgages just got more expensive. The highest increases concern those who have a very low own contribution – at the level of 10 percent. For them, over the past year, the average interest rate has increased from 4.08 to 4.21 percent.

Housing loan – interest rate

Housing loan - interest rate

The increase in interest rates not only increases the cost of credit, but also its availability. As our analyses show, in which we took into account a family of three with an income of USD 8,000 net / month, creditworthiness decreased by almost USD 50,000 (from USD 685 thousand to USD 635 thousand).

In 2020, no major changes are planned for borrowers, but it can be expected that banks will regularly tighten their criteria for granting financing.

Therefore, if we have the funds for own contribution and we are determined to buy a new M., it is not worth waiting with this decision and applying for a loan.

House prices in Poland


The real estate market in Poland is doing very well. Despite rising housing prices, interest in buying a new apartment is not weakening, also with a view to renting. We are still happy to buy real estate on credit.

We take them for higher and higher amounts. Most often it is between 200 and 500 thousand. USD. Loans of this value constitute as much as 81 percent. all mortgages granted in 2016 Q3 Interest in larger sums has also increased – from 600,000. USD and up

According to Credit Checker, only from January to October we took out mortgage loans worth over USD 54.6 billion. It is about 14 percent than in the same period last year, of which over USD 22 billion were granted with the support of experts from the Association of Financial Intermediation Companies. Will these trends persist in 2020? How will the future await those who are getting ready to buy their own M.? Will it be harder to get funding? What should future borrowers prepare for?

Is it expensive and will it be even more expensive?

Is it expensive and will it be even more expensive?

The year 2019 on the housing market ends with growth. Both when it comes to real estate prices (we have been observing this trend for a long time) and the number of premises completed. As for the latter issue, 164,000 hit the market. new apartments. It is about 11 percent. more than a year ago.

As for the largest Polish agglomerations, this difference is not so noticeable, because we are observing a tendency to transfer supply to regional cities, because there is also growing demand. There are many indications that this trend will continue in 2020.

Developers and investors who share the housing market with the rise in property prices are largely explained by the rise in the standard of living of Poles. And also the increase in income in our country. However, is a statistical Pole able to afford M.? The costs of buying a flat are rising much faster than our salaries (an increase of 12% vs. 7%), and there is no indication that the trend will reverse next year.

The purchasing power of Poles is changing and thus the availability of housing is deteriorating. For example, for the purchase of apartments with an area of 50 m 2 in the big city three years ago you had to spend an average of 95 net salary. Today it is 101 salaries.


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