Interest rates falling? According to the online comparison site Rankomat.pl interest rates may fall by 0.75 percentage points this year. “That would cause it a decrease in the average loan installment by PLN 196 and increase in creditworthiness,” we read, among other things, in the analysis.
Reductions in deposits and loans: Despite the MPC's decision“bank discounts have already started, not only in the case of deposits, but also loans.” According to NBP data, the average interest rate on deposits dropped below 4 percent in November. for the first time since May 2022. Average mortgage interest rates was also the lowest since May 2022 and amounted to 7.35%. Consumer loans also became cheaperwhose APR dropped below 13% for the first time since December 2021.
What installment? According to the Rankomat.pl portal, “the prevailing belief is that rates will fall by 0.75 percentage points and that changes will be implemented in the second half of the year“. Analysts calculated how the mortgage installment would look likeif the Monetary Policy Council finally decided to reduce interest rates. “In the case of an average loan of PLN 400,000 for 30 years, granted in January 2021, a decrease by 0.5 percentage points would reduce the installment from the current level of PLN 2,921 to PLN 2,787, i.e. by PLN 134. In turn, a decrease by 0.75 percentage points would reduce the installment by PLN 196, and a decrease of 1 percentage point would reduce the installment by PLN 257 PLN,” we read.
Creditworthiness: A fall in interest rates would also improve availability of mortgage loans. In the case of a person who can currently count on PLN 400,000, a reduction of 0.5 percentage points. would increase the creditworthiness to approximately PLN 420,597. Decrease by 0.75 pp. would increase the available loan amount to PLN 431,529, and by 1 percentage point up to PLN 442,919.
They are counting on a reduction: “Approximately 200,000 people who used discounts last year are probably counting on discounts statutory credit holidays” – we read. Theirs expenses for repayment of installments this year they may increase by as much as 50%. If someone suspended the repayment of four installments in 2024, they would only have to pay eight of them. “Assuming that the installment was, for example, PLN 2,921, in total in 2024 such a person spent approximately PLN 23,366 on installments. In turn, this year he will have to pay 12 installments. If the amount of the installments did not change, the expenses would be PLN 35,049, so they will increase by 50 percent. The amount increase in expenses will amount to PLN 11,683,” he enumerates Rankomat.pl.
See also: There are new data on core inflation. More in the text entitled “An important measure of inflation is clearly down. The Monetary Policy Council is watching it closely”.
Source: Rankomat.pl