In brief

• Demand for mortgage loans did not weaken significantly in October.
• An important driver of the growth in applications is the refinancing of liabilities held at other banks.
• The further level of demand depends on interest rates and banks' decisions regarding margins.

Demand remains high

According to the assessment of the Credit Information Bureau, the fundamentals of demand for housing finance remain strong (Wciąż wysoka fala popytu na kredyty mieszkaniowe. Dopalaczem refinansowanie – Rzeczpospolita). October did not bring a clear decline in the number of applications, although some people are holding off on decisions, hoping for further cuts in interest rates.

Refinancing drives applications

The importance of refinancing has risen markedly. Some borrowers are transferring their liabilities to another bank, where the offer is more favorable and the cost of servicing is lower. This distinguishes the current wave from earlier periods, when purchases of new apartments and houses dominated.

Who submits applications

Applications come both from people buying a property for the first time and from those who are already repaying a loan. For the latter, the amount of the installment matters above all, which is why transferring the debt on better terms becomes worthwhile.

What's next

The Credit Information Bureau points out that maintaining demand at its current level depends on how interest rates evolve and on banks' decisions regarding margins. Prospective borrowers should compare offers before submitting an application, and current borrowers should check whether refinancing will actually reduce the monthly installment after taking into account the transfer costs.

Also read

• Refinansowanie zajmuje już trzecią część rynku kredytów mieszkaniowych
• Trudniej o kredyt mieszkaniowy. Banki zaostrzają kryteria i inaczej traktują dochody z 800+
• Banki słabiej finansują kredyty hipoteczne i tną warunki dla komercyjnych nieruchomości