The impact of COVID-19 pandemic on financing the purchase of residential real estate through a mortgage in Poland
| Oct 26, 2021
About this article
Published Online: Oct 26, 2021
Page range: 20 - 46
DOI: https://doi.org/10.2478/wrlae-2021-0011
Keywords
© 2021 Agnieszka Sadowa, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
Figure 1
![Indicator of “apartments for sale” queries directed to the Google search engineSource: Google Trends, website: https://trends.google.pl/trends/explore?q=mieszkania%20na%20sprzeda%C5%BC&geo=PL [accessed: 10.10.2020.].](https://sciendo-parsed.s3.eu-central-1.amazonaws.com/64739dc94e662f30ba5441e2/j_wrlae-2021-0011_fig_001.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20240626T064004Z&X-Amz-SignedHeaders=host&X-Amz-Expires=18000&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20240626%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=1f356fcd194c49d065f8749fcb583969c0f6b364383e114343dcb8612d7b4ec1)
Figure 2
![Quarterly relation of demand to supply – primary marketSource: JLL report, Rynek mieszkaniowy w Polsce Q1 2021 [‘Residential market in Poland Q1 2021’], p. 5.](https://sciendo-parsed.s3.eu-central-1.amazonaws.com/64739dc94e662f30ba5441e2/j_wrlae-2021-0011_fig_002.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20240626T064004Z&X-Amz-SignedHeaders=host&X-Amz-Expires=18000&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20240626%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=58f851477995e6ac83d585a7c7b6bb16e776120ccc4288e1cb7f68a9b3d47fe9)
Figure 3
![Reasons for changes in lending policy – home loansSource: Report: Sytuacja na rynku kredytowym - wyniki ankiety do przewodniczących komitetów kredytowych, III kwartał 2020 r. [Situation on the credit market – results of the survey to chairmen of credit committees, Q3 2020], Departament Stabilności Finansowej [Financial Stability Department], p. 8.](https://sciendo-parsed.s3.eu-central-1.amazonaws.com/64739dc94e662f30ba5441e2/j_wrlae-2021-0011_fig_003.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20240626T064004Z&X-Amz-SignedHeaders=host&X-Amz-Expires=17999&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20240626%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=60dc0d2bc4938c079de5a5d3172bf0c50fbe8824732ffde4c94a37176f48b79e)
Figure 4
![BIK index – the demand for housing loansSource: BIK (Credit Reporting Service), media.bik.pl/informacje-prasowe/578007/bik-indeks-popytu-na-kredyty-mieszkaniowe-wyniosl-we-wrzesniu-2020-r-5-4 [accessed: 07.10.2020].](https://sciendo-parsed.s3.eu-central-1.amazonaws.com/64739dc94e662f30ba5441e2/j_wrlae-2021-0011_fig_004.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20240626T064004Z&X-Amz-SignedHeaders=host&X-Amz-Expires=18000&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20240626%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=b76462e03003f9c82e593e09d3345e57abe3562c8b312bfa898b7d454a05fb3f)
Figure 5
![Average mortgage loan margin (%)Source: AMRON-SARFiN report, Ogólnopolski raport kredytach mieszkaniowych i cenach transakcyjnych nieruchomości [Polish nationwide report on housing loans and property transaction prices], 2/2020, p. 16.](https://sciendo-parsed.s3.eu-central-1.amazonaws.com/64739dc94e662f30ba5441e2/j_wrlae-2021-0011_fig_005.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20240626T064004Z&X-Amz-SignedHeaders=host&X-Amz-Expires=18000&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20240626%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=c75db48fb82df2694d58a46efed39638f60f04b89b38ac07de9024c9a9eddd2c)
Summary of negative and positive effects of the COVID-19 pandemic for borrowers
| Limiting consumer spending of households | Uncertainty – difficulties in forecasting | |
| Stable prices of residential real store | Fall in supply of housing | |
| Stable level of the Housing Accessibility Index | Deterioration in the economic situation of households | |
| Decline in demand for housing (less competition, grater negotiation opportunities on the market) | Tightening the criteria for granting loans by banks (including in terms of own contribution, margin, maximum possible loan amount, exclusion from financing of industries particularly exposed to insolvency) | |
| Easing the lending policy (drop in interest rates, statutory and non-statutory credit holidays) | Extended waiting time for the funding decision | |
| Lowering total credit costs for new loans | There are no uniform credit moratoria standards for all banks | |
| Improving remote customer service |
Dynamics q / q m2 prices of apartments in the analysed cities in Q3 2020
| Gdańsk | −1.7% | −3.3% | −0.7% | 4.4% |
| Gdynia | 1.4% | 3.3% | 1.4% | 2.7% |
| Kraków | −2.8% | 2.0% | −1.3% | 0.5% |
| Łódź | 3.4% | 5.4% | 0.6% | 7.0% |
| Poznań | 2.0% | 0.3% | 0.4% | 2.4% |
| Wrocław | 0.2% | 0.9% | 3.5% | −2.6% |
The structure of the LtV ratio for newly granted loans
| 14.63% | 14.94% | 15.67% | 16.51% | 15.11% | |
| 6.16% | 6.25% | 6.05% | 5.95% | 7.37% | |
| 36.93% | 35.93% | 36.25% | 36.47% | 38.91% | |
| 43.09% | 42.88% | 42.03% | 41.07% | 38.61% |
Comparison of mortgage loans offers
| Simulation name | Citi Handlowy Housing Loan for the Priority segment Margin 1.74 | Citi Handlowy Housing Loan for the Priority segment Margin 1.74 | Citi Handlowy Housing Loan for the Priority segment Margin 1.89 |
| Monthly costs (from the second month) | 1357 PLN | 1268 PLN | 1153 PLN |
| Total cost of the loan | 192.198 PLN | 160.137 PLN | 118.704 PLN |
| Real interest | 3.8% | 3.23% | 2.46% |
| Bank margin | 1.74% | 1.74% | 1.89% |
| Reference rate | 1.71% | 1.17% | 0.28% |
Own contribution in February, June and September
| Alior Bank | 10% | 10% | 10% |
| BNP Paribas | 20% | 20% | 20% |
| BOŚ Bank | 20% | 30% | |
| Credit Agricole | 10% | 10% | 10% |
| ING Bank Śląski | 20% | ||
| mBank | 10% | ||
| Bank Millennium | 10% | 10% | 10% |
| Pekao Bank Hipoteczny | 10% | 20% | |
| Pekao SA | 10% | 15% | |
| PKO BP | 10% | 20% | |
| Bank Pocztowy | 20% | 20% | 20% |
| Santander | 10% | 10% (bank customers)/20% (external) | |
Dynamics q / q m2 prices of apartments in the analysed cities in Q2 2020
| Gdańsk | −1.0% | −0.1% | −2.2% | 2.4% |
| Gdynia | 2.1% | −3.4% | −0.2% | 0.5% |
| Kraków | 5.7% | 4.3% | 1.6% | 3.8% |
| Łódź | −1.5% | −2.7% | −0.6% | 4.7% |
| Poznań | 2.9% | 0.2% | 0.2% | 3.3% |
| Wrocław | 2.0% | −3.8% | −1.6% | 2.5% |