Mortgage – what amount can you get?
Despite favorable conditions, fewer and fewer housing loan agreements are concluded. The growing creditworthiness, low installment and high supply of flats are too weak incentives to encourage Poles to buy flats and are indebted for a long period.
According to the SAMRON FINANCE report, from the beginning of July to the end of September it was granted by 4.06%. fewer loans than in the second quarter of this year and by 4.63 percent less than in the same period of the previous year. The value of loans granted is also lower.
We do not want to get into debt
Even though market factors are favorable. Record low interest rates meant that the decrease in the base rate on which credit interest rates are built, more than offset the increase in margins. Recently, their growth dynamics has also slowed down, therefore borrowers can benefit from extremely low installments. A smaller monthly commitment also means a higher creditworthiness. It has been growing continuously for 5 months reaching record high levels.
Housing prices do not change rapidly. They are not growing yet, but are not falling anymore, so they do not give hope that withholding the decision will allow purchasing on even more favorable terms than at present. Average monthly fluctuations in the price of a square meter of real estate do not exceed several dozen dollars. Developers’ moods are optimistic, and growth is recorded on the housing construction market. The number of dwellings completed is 10% higher than in the second quarter. The number of new building permits is also growing.
The average salary in the enterprise sector is an average of 4 per cent. higher than the same periods of the previous year. The negative inflation rate means that consumers’ portfolios, at least statistically, have more resources available.
No chance to improve the situation
From the new year, interest in housing loans will certainly not increase. Quite the opposite – banks will require twice as much own contribution as currently, which will stop selling mortgages. Already a 5% share of own funds for many people was a serious barrier on the way to buying their own apartment. Winning 10 percent of the property price for an even larger group of Poles will be impossible. It should be remembered that in the following years the maximum LTV level (loan amount in relation to the collateral value) will be further reduced. So people who want to collect their savings have a difficult task to accomplish.
The government assistance program for borrowers – Flat for the Young, which was supposed to be support in financing own contribution, practically does not meet the expectations. The percentage of loans in the program, in relation to the total number of mortgages launched, is small. Nothing announces a change in this state of affairs unless real, and not only cosmetic, changes are introduced in the program.
In addition, in the opinion of the chairmen of credit committees, you are more likely to tighten your bank’s policy than to ease it.
After record-breaking increases in creditworthiness, another month brought stabilization. The factors determining the amount of available amounts changed only slightly to offset each other. However, it should be remembered that loan availability is not only the amount of credit that can be obtained. When considering the application, the banks also analyze the client’s income sources, as well as employment stability. In this respect, banks’ policies have recently tightened slightly, and despite the increase in the amounts available, the loan is not as easily available as it was several months ago. From the new year, a factor that limits the availability of credit to an even greater extent will be a minimum own contribution of 10 percent.
The creditworthiness of the model family increased in November for another month in a row. However, the increase was much lower than in October. The average creditworthiness amounted to $ 468 630, which was 0.9% higher than a month earlier. WoPocket Bank offered the highest loan amount. Borrowers could get $ 499 thousand there. USD loan. Kirin Bank was willing to grant a loan of $ 498 thousand. $, and Gold Mill Bank 487 thousand Golden. The margin increased by 0.01 percentage point and amounted to 1.84%.
At the December meeting, the Monetary Policy Council decided to leave interest rates at the current level. This means that the main interest rate remains at its lowest level in history and amounts to 2 percent. However, the WIBOR 3M rate is more important for borrowers. Next to the bank’s margin, it is he who is the main component of interest rate. It currently amounts to 2.06 percent, which is from its record low level, which it reached on November 5 this year, is higher by only 0.12 percentage point. Loan installment for 300,000 $, incurred for a period of 30 years, with a margin of 1.8% and with the current base rate will be around $ 1 408. During the year it decreased by over $ 100.
The creditworthiness also increased for the single. In the previous month, it could receive an average of $ 260,501 loans, which is half a percent more than in October. Most, because 284 thousand. USD wBank offered $ 281,000 dollars is the maximum capacity at Kirin Bank, and 258,000 at WoPocket Bank.
After two months, in which the height of the dream has not changed, in November it fell by 0.01 percentage point to the level of 1.83%.