Credit installments down. The variable foot tempts Poles again
Falling interest rates restore the attractiveness of mortgage loans with a variable rate. The installments are even several hundred zlotys lower.
In April, banks did not introduce significant changes in mortgage margins with a variable interest rate, but the decrease in WIBOR indicators reduced the total cost of liabilities. Customers can count on lower installments today – up to several hundred zlotys a month compared to the previous month.
Decrease in WIBOR
WIBOR 6M fell within a month by over 0.5 percentage points, and WIBOR 3M by over 0.3 pp. WIBOR 1M remained almost unchanged. These differences result from different time horizons, which take into account individual rates – the longer the date, the greater the expectations for future interest rate reductions.
Variable interest rate, although more susceptible to market fluctuations, in the current situation can be an attractive alternative. Falling WIBOR rates mean real savings for new borrowers. WIBOR 6M loans are the fastest cheaper. However, if there are signals of the end of the reduction cycle, it is these products that can stop cheaper first.
Ranking of offers
Bankier.pl has prepared a ranking of bank offers for an example family from Warsaw. A purchase of a 55-meter apartment from the secondary market worth 740 thousand was founded. zloty. The borrowers have a 20 % own payment (PLN 148 thousand), and the loan is 592 thousand. PLN for 25 years. Banks have prepared simulations for customers with a good credit history and high financial capacity. All offers were based on unified WIBOR values of April 9.
The list shows the dominance of offers with a margin below 2 pp. Two institutions lowered the margin, one raised it – but the changes are cosmetic. Compared to loans with a periodically fixed interest rate, installments at the variable rate can be up to PLN 400 at the start. However, if the cycle of foot reductions is continued, such obligations may become more profitable in the long run.
Differences in profitability between variants depend on a specific bank. In commercial Citi, costs would be equal to WIBOR by 0.18 pp, while in Bank BPS you need to decrease by as much as 1.63 pp. The variable interest rates regained interest – especially among those who count on further loosening of monetary policy.
