500 plus can increase your creditworthiness. The president of Alior Bank, Grzegorz Olszewski, informed in an interview with “Dziennik Gazeta Prawna” that since December the bank has been taking into account the benefit from the Family 500 plus program when calculating its creditworthiness. – This is of great importance for the creditworthiness of families with children – he stressed. 500 plus when examining creditworthiness, applicants also take into account ING Bank Śląski and Credit Agricole.
According to the recommendation of the Polish Financial Supervision Authority, banks must now calculate the creditworthiness of persons applying for a mortgage loan, taking into account interest rates higher by 5 percentage points. From April 2022, the KNF doubled the required safety buffer, which previously amounted to 2.5 percentage points.
They’ve come to this interest rate increases NBP. Since October 2021, the Monetary Policy Council has raised the main, reference interest rate 11 times, which in a short time increased from 0.1 percent to 0.1 percent. up to 6.75 percent
As a result, the creditworthiness of Poles fell sharply, and lending also slowed down.
According to the data of the Credit Information Bureau, in November 2022, banks granted a total of 6.6 thousand loans. mortgage loans, which meant a decrease of 69.6 percent. compared to the situation in the previous year. Last month, the number of home loan applicants fell by about 63% year-on-year. – up to 33.16 thousand people.
500 plus taken into account when examining creditworthiness
Grzegorz Olszewski, the president of Alior Bank, in an interview with “Dziennik Gazeta Prawna” published on Wednesday, was asked what demand for loans, especially mortgage loans, was expected this year.
– Demand is closely correlated with the level of interest rates and customers’ ability to incur liabilities. Remember that there is still a 5 percent buffer when testing abilities. This, combined with high rates, makes creditworthiness limited. Although we are trying to make changes to counteract this negative phenomenon – pointed out Olszewski.
As he informed, Alior Bank, for example, from December also takes into account when calculating creditworthiness benefit 500 plus. We are one of the first banks to do so. This is of great importance for the creditworthiness of families with children – emphasized Olszewski.
As he noted, “initially, the banks did not decide to do this, because there was a discussion on whether this program would last. Today there is no doubt about it. There is acceptance for it, regardless of the political option.” – In addition, we gave up the margin in the first year after the loan was granted – he added.
The 500 plus benefit also takes into account ING Bank Śląski when calculating creditworthiness. “For a cash loan from May 15, 2017, for the overdraft limit in the account and credit card from August 16, 2020, and for mortgage loans from August 21, 2022,” Joanna Majer-Skorupa, deputy spokesperson of ING Bank Śląski, told TVN24 Biznes.
Credit Agricole Bank announced that it takes into account the benefit from the government program when calculating creditworthiness from October 2019.
In turn, mBank informed that it had not introduced any changes to the creditworthiness test. “We do not include 500+ in capacity calculations,” reads the reply sent to us.
The KNF is preparing changes
The Office of the Polish Financial Supervision Authority is working on modifying Recommendation S and partially relaxing the creditworthiness test.
“The Office of the Polish Financial Supervision Authority is currently working on modifying Recommendation S with regard to the use of a buffer for interest rate risk in the process of assessing creditworthiness by banks. They are aimed in particular at taking into account the recommendations of the Financial Stability Committee and the postulate regarding the anti-cyclical setting of the buffer” – he announced at the end of December last year TVN24 Biznes Jacek Barszczewski from the Office of the Polish Financial Supervision Authority.
As he added, “as part of this work, the KNF Office is also working on introducing specific solutions for housing loans based on a fixed or periodic fixed interest rate to the content of the Recommendation, so that the construction of the buffer takes into account the lower interest rate risk of periodic and fixed interest loans compared to loans based on variable interest rate. This also implies taking into account the duration of the fixed rate.”
The Office is considering changes in calculating the capacity for mortgage loans with a periodically fixed interest rate. For such products, the safety buffer would be – as before – 2.5 percentage points. Changes in the capacity calculation would not apply to mortgage loans with a variable interest rate, based on, for example, WIBOR 3M or WIBOR 6M.
“At the current stage of work, the KNF Office assumes that in relation to a periodically fixed interest rate with a 5-year fixed rate tenor, this buffer would amount to 2.5 percentage points, and that its amount would decrease as the period of validity of the fixed rate increases. With regard to the fixed interest rate for the entire loan period, the current rule that the buffer does not apply at all would be maintained.
However, he did not specify when the changes could come into force. Business Insider was the first to write about the planned modifications in Recommendation S.
TVN24 Biznes, “Dziennik Gazeta Prawna”
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