Cycles of interest rate reductions started
International presented its forecasts related to mortgage loans and a reduction in interest rates business investment Colliers. According to their forecast The May reduction of the NBP interest rates began the cycle. – Although in June the Monetary Policy Council may stop with further cuts, subsequent movements are already possible in July – after publishing new inflation data. By the end of 2025, the feet can be reduced by a total of 50-75 base points-provides the director of the Economic and Market Analysis Department of Central and Eastern Europe in Colliers Grzegorz Sielewicz.
Interest rates down. How much can the loan installment decrease?
Reductions of loan installments are already visible. A mortgage loan installment worth 430 thousand PLN enlisted at 25 years with a variable interest rate dropped from PLN 3206 to PLN 3067. That's PLN 139 per month. – If the forecasts work, the installment can decrease by over PLN 600 per month by the end of the year, and the annual savings will exceed PLN 7,000. It not only relieves homemade bodiesbut it really improves creditworthiness – believes Sielewicz.
Large traffic on the housing loan market
In recent years, a lot is going on on the housing real estate market in Poland. Starting a series of increases in October 2021 meant that The number of newly granted loans has dropped from 68 thousand. in Q3 2021 to 19 thousand in the fourth quarter of 2022. This was influenced by high interest rates and limited access to mortgage loans. “It was the lowest level in two decades,” noted the expert from Colliers. The revival took place with the launch of the “2 % credit” program. At the end of 2023 and early 2024, the number of loans again exceeded 60 thousand. After the program, demand continued to grow. Ward of this year Over 48 thousand were granted loans, and interest in, as shown by BIK data, is still increasing. – The number of loan applications was by 10 percent. higher than a year earlierand the number of reservations of apartments in May almost doubled on March – said Sielewicz.
What loan is best to choose?
Many people also wonder if in the event of a decrease in interest rates it is better to take a loan with a fixed or variable interest rate. – In theory, a variable interest rate may seem more favorable – if the interest rates fall, the interest rate will also automatically decrease loanand thus his installment. In practice, however, the choice depends largely on the individual approach to financial risk and flexibility. It is worth remembering that also in the case of a loan with a fixed interest rate it is possible to reduce it in the future, without having to wait for the end of the fixed rate. You can carry out refinancing, i.e. transfer the loan to another bank offering a lower rate, adapted to current market conditions. – said Jarosław Sadowski, director of the Analysis Department of the Rankomat.pl portal for next.gazeta.pl.
Advantages of a loan with a fixed interest rate
– The advantage of a loan with a fixed interest rate Currently, it is also often Lower interest rate in the initial repayment period. Some of the current interest-bearing loans will become more profitable only after a 0.5-1 points decrease. percent So you can ask yourself question: Why pay more at the beginning, since for some time you can use the lower installment and after any further decreases of the feet? In addition, a fixed interest rate also protects against unexpected interest rate increases. It is worth remembering that sometimes the situation can change quickly – explained the specialist. He added at the same time that for people who do not want to worry about refinancing, the variable interest rate may be more convenient. On June 4, at a meeting of the Monetary Policy Council, a decision on interest rates will be announced in June.
Read also: “Interest rates down. What should mortgage borrowers do now?“
Sources: CIS, Local government portal