The impact of COVID-19 pandemic on financing the purchase of residential real estate through a mortgage in Poland

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Summary of negative and positive effects of the COVID-19 pandemic for borrowers

No.	Positive effects	Negative effects
1.	Limiting consumer spending of households	Uncertainty – difficulties in forecasting
2.	Stable prices of residential real store	Fall in supply of housing
3.	Stable level of the Housing Accessibility Index	Deterioration in the economic situation of households
4.	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)
5.	Easing the lending policy (drop in interest rates, statutory and non-statutory credit holidays)	Extended waiting time for the funding decision
6.	Lowering total credit costs for new loans	There are no uniform credit moratoria standards for all banks
7.	Improving remote customer service

Dynamics q / q m2 prices of apartments in the analysed cities in Q3 2020

	RPO	RPT	RWO	RWT
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%
Warszawa	0.2%	7.9%	1.7%	−3.0%
6 cities	0.2%	1.9%	0.4%	2.5%
10 cities	3.3%	2.7%	0.6%	0.2%

The structure of the LtV ratio for newly granted loans

LtV ratio (%)	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020
Up to 30%	14.63%	14.94%	15.67%	16.51%	15.11%
Between 30% and 50%	6.16%	6.25%	6.05%	5.95%	7.37%
Between 50% and 80%	36.93%	35.93%	36.25%	36.47%	38.91%
From 80%	43.09%	42.88%	42.03%	41.07%	38.61%

Comparison of mortgage loans offers

	Month
	February	April	September
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

Bank name	Own contribution (%)
	February 2020	June 2020	September 2020
Alior Bank	10%	10%	10%
BNP Paribas	20%	20%	20%
BOŚ Bank	20%	30%	30%
Credit Agricole	10%	10%	10%
ING Bank Śląski	20%	30%	20%
mBank	10%	20%	10%
Bank Millennium	10%	10%	10%
Pekao Bank Hipoteczny	10%	20%	20%
Pekao SA	10%	15%	15%
PKO BP	10%	20%	20%
Bank Pocztowy	20%	20%	20%
Santander	10%	20%	10% (bank customers)/20% (external)

Dynamics q / q m2 prices of apartments in the analysed cities in Q2 2020

	RPO	RPT	RWO	RWT
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%
Warszawa	1.0%	−3.9%	−1.2%	0.2%
6 cities	2.2%	0.3%	−0.4%	3.5%
10 cities	3.6%	−1.2%	2.4%	4.5%