Interest rates and loan installments. Calculations by Jarosław Sadowski from Expander Advisors

As Sadowski reminds, the WIBOR 3M rate dropped from 6.67% within 3 months. to 5.84 percent “In the case of a loan of PLN 300,000 for 30 years, granted in November 2020, the installment will drop from PLN 2,341 to PLN 2,177,” the analyst calculates.

“In the case of a loan based on WIBOR 6M, the decrease in this rate within 6 months is 6.95% to 5.82%. This will reduce the installment from PLN 2,401 to PLN 2,177 (it is a coincidence that the installment amount in both cases is PLN 2,177, the interest rate is slightly lower, but the current debt is slightly higher) – we read.

The expert reminds that more were expected just a month ago interest rate cuts. “Therefore, WIBOR rates were lower than today. Those who had the interest rate updated a month ago were a bit lucky. Their installments dropped to a level lower by PLN 39 (for WIBOR 3M) or by PLN 52 (for WIBOR 6M) compared to people which now have such an update,” explains Sadowski. However, he emphasizes that “of course, this benefit will only work until the next update.”

“Unfortunately, despite the reduction, the installments will still be much higher than in the initial repayment period. The first installment of the loan based on WIBOR 3M was PLN 1,174, and the one based on WIBOR 6M was PLN 1,179. In both cases, the installment is approximately PLN 1,000 higher than at the beginning,” Sadowski points out.

During its December meeting, the Monetary Policy Council decided to keep the NBP interest rates unchanged. The reference rate is currently 5.75 percent.

Economists expected that the Monetary Policy Council would not change interest rates at its last meeting this year.