A woman with her own "M". The bank looks at more than just salary

Women repay loans more timely than men. Despite this, their creditworthiness is often lower. Why?

Banking algorithms calculate creditworthiness according to absolute formulas. Income, liabilities, own contribution – everything turns into numbers. However, behind these equations there are very human stories: single women, women in relationships, mothers raising children on their own.

Experts from the RynekPierwotny.pl portal checked how much you really need to earn to have a chance to buy your own apartment – and why the mortgage loan is not solely determined by the amount of salary.

– The bank looks not only at the amount of salary, but also at the stability of income, financial liabilities and own contribution. Two people with the same income may have completely different creditworthiness – explains Jarosław Jędrzyński, an expert at RynekPierwotny.pl.

Single versus couple – banking math

Differences in creditworthiness are best seen with a simple example.

Single woman earning PLN 5,000 PLN on hand can count on a loan of PLN 300,000-320,000. zloty. However, if a second person with the same income appears in the household, creditworthiness may even more than double.

The reason is simple: the cost of living is not rising at the same rate as incomes.

– Two people living together spend more than a single person, but not twice as much. This means that with double income and only slightly higher costs, the couple has a larger monthly surplus, i.e. more financial “air”. And the bank appreciates it very much because it sees less risk and a greater margin of safety when repaying installments – explains Jarosław Jędrzyński.

This does not mean, however, that single women are at a disadvantage.

– He can buy a smaller apartment (25-35 sq m), it may be easier to rent it, and if he is planning a mobile life, he may even treat it as the first step to investing. Couples usually aim for a larger space – a single woman can act more cleverly and flexibly – adds the expert.

Women repay better, but banks calculate more carefully

The statistics show an interesting paradox. Data from the Credit Information Bureau show that women repay their debts more timely than men – they are less likely to be in arrears and less likely to cause serious delays. Despite this, their creditworthiness – especially in the case of single women – is sometimes lower. The reason lies in the bank’s risk calculations.

– This is not malice – it is pure statistics. Banks take into account possible breaks at work, e.g. maternity or parental leave. Therefore, women are increasingly becoming aware customers who collect their own deposit, build a credit history and refine their profile – before they even enter the bank – notes Jędrzyński.

Own contribution – the most important bargaining chip

In the realities of the housing market, your own contribution acts as a bargaining chip.

– The minimum threshold is 10 or 20 percent, but every additional zloty works to your advantage – emphasizes the expert.

For example, with an apartment worth PLN 500,000. PLN difference between 10 and 20 percent. own contribution is PLN 50,000. zloty. This amount may translate into significantly better loan terms.

– This difference can reduce the installment by up to several hundred zlotys per month and increase your creditworthiness by several dozen thousand. And it works – even if you don’t earn “a lot”, thanks to a higher deposit you can increase your chances of getting a loan and improve the conditions for years – says an expert from the RynekPierwotny.pl portal.

Why does the bank say “no” even when you earn well?

Many clients assume that the only obstacle to obtaining a loan is too low an income. In practice, banks’ decisions can be more complex.

– More and more often, banks refuse financing for completely different reasons. For example, someone earns well, but has several active credit cards, a small overdraft and installments for electronics. The total amount of liabilities may be only several hundred zlotys per month, but for the bank it is a signal that the client likes to use “credit” financing, says Jędrzyński.

Changing a job or switching to a B2B business can be equally problematic.

– There are also people who have high earnings, but only for a few months, which the bank treats as lack of stability. The rejection is often a surprise because “I earn more than ever”, but what matters most to the bank is the continuity and predictability of income – adds the expert.

Looking for an apartment

There is also a clear change in morals on the real estate market. Developers and mortgage advisors increasingly admit that it is women who start the process of looking for an apartment.

– They are the ones who call the sales office, research the districts, look at the plans, ask for visualizations, compare offers, ask about operating costs, standard and commute. Men usually join only at the decision stage, says Jedrzyński.

As he notes, a decade ago sellers more often treated men as the main customer. Today, conversations increasingly begin with questions about functionality and comfort of life.

“This apartment must be functional, quiet, well-lit and child-friendly…” – such requirements increasingly determine the direction of searches.

Ladies count differently: less risk, more planning

Differences between the approach of women and men are especially visible when signing a loan agreement.

– Men most often ask: “Can I afford it?” and women: “Can I safely afford it?” – notes an expert from the RynekPierwotny.pl portal.

This subtle difference has real consequences.

– Women are more likely to assume scenarios such as: “What if I lose my job?”, “Will I be able to afford the installments after the interest rate increase?”, “Will we be able to cope if we have a child?” Therefore, they more often choose lower installments, even at the expense of a longer loan period, avoid excessive risk and plan to build a financial cushion – explains Jędrzyński.

Banks are starting to notice this.