Harder to get a mortgage? This is how the creditworthiness of Poles changes

Creditworthiness has been gradually decreasing since 2022. This state of affairs was influenced by many factors, including rising inflation and interest rates

The average value of a housing loan applied for in July this year amounted to PLN 410.42 thousand. PLN and was higher by 21.0% compared to the value from July 2022. Compared to June 2023, it was higher by 7.4%. However, there is a specter of change on the horizon – banks plan to tighten their policies, and thus limit the possibility of taking out loans.

Three years of dynamic changes

Three years of changes are behind us, which were very dynamic in the case of creditworthiness. The highest amount could be borrowed by all those who applied for a loan in 2021. Currently, with the stabilization, which is associated with a decrease in WIBOR, the capacity has slightly increased again. This was influenced, among others, by the decision of the Polish Financial Supervision Authority, which decided to lower the safety buffer for interest rate increases from 5 percent to 5 percent. up to 2.5 percent for loans with a temporarily fixed interest rate – says Wojciech Rynkowski, an expert from Extradom.pl.

So, how has the creditworthiness changed in the case of a couple with one child, who earn a total of PLN 6,400 net over the course of 3 years?

From May 2020 to September 2021, the amount of credit that the above family could receive was very high. However, since the Monetary Policy Council started a series of interest rate increases, the capacity has dropped drastically. Today, looking at July 2023, it is very low, because its amount does not even exceed 200,000. Zloty. With an equity contribution of 20%. – it is not enough to buy your own apartment or build a house – adds an expert from Extradom.pl

4,000, 8,000 or 10,000 thousand. PLN – how much do you have to earn to be able to build a house on credit?

Earnings and family situation are some of the factors that determine the final loan amount that the bank will grant us. Thus, experts from Extradom.pl decided to check what the options look like in the case of three financial ceilings of four, eight and ten thousand zlotys, respectively.

We were the first to consider the case of a single person who earns PLN 4,000 net and has 20 percent of own contribution. The analysis of the banks’ offer shows that a mortgage is available to such a person, but the maximum amount of financing is PLN 277,000. PLN, and thisdefinitely not enough for your own apartment in the largest cities in Poland – notes Wojciech Rynkowski from Extradom.pl.

Creditworthiness: PLN 4,000 net salary (Single) – 20 percent. own contribution

The following calculations were made for families with dependent children: two and one, respectively. Each child is a person who is dependent on the future borrower. Thus, the presence of minors in the household reduces, according to banks, creditworthiness.

Parents also wonder if supplements such as 500+ can have a positive impact on the final amount of financing? Unfortunately, with most lenders, social security benefits are not counted as capacity. The exceptions are PKO BP and Bank Millennium.

Creditworthiness with earnings of PLN 8,000 (2+2 family) – 20 percent. own contribution

– A 2+2 family with a combined income of 8,000,000 zloty. He can apply for an amount of up to 400,000. zloty. On average, banks are willing to borrow about PLN 250,000. zloty. We can see big changes in the case of BNP Paribas and Bank Pocztowy – these institutions have reduced the creditworthiness of such investors by over 100,000. PLN – notices Rynkowski from Extradom.pl.

The last analyzed case is a family with one child, whose income is PLN 10,000,000. zloty. and it has an own contribution of 20 percent.

Creditworthiness: PLN 10,000 (Family 2+1) – 20 percent. own contribution