In brief

• In the third quarter, banks tightened criteria for granting mortgage loans, for the first time in seven quarters.
• The net balance of bank responses reached minus 39 percent according to the NBP report.
• Changes in how 800+ income is recognized may reduce the creditworthiness of some families.
• A decline in demand for mortgage loans is expected.

Tightening after seven quarters of easing

In the third quarter of this year, banks tightened criteria for granting mortgage loans, for the first time in seven quarters. This follows the NBP report "Sytuacja na rynku kredytowym" (Situation in the credit market), published on Monday (Trudniej o kredyt mieszkaniowy. Banki zmieniają podejście do 800+ – Rzeczpospolita). The net balance of bank responses was minus 39 percent, meaning that institutions tightening their policy clearly outnumbered those easing it.

800+ income under scrutiny

One of the reasons for changes in the assessment of creditworthiness is changes in the rules for recognizing some sources of income, which include the 800+ benefit. For families with children, this may mean lower creditworthiness, that is, a lower amount that a bank is willing to lend.

Decline in demand for mortgages

A decline in demand for mortgage loans is also expected. Narrower criteria combined with less interest from customers mean that the credit market for future home buyers may be less accessible than in previous quarters.

What it means for buyers

People planning to buy an apartment with a loan should, before submitting an application, check whether the bank takes the 800+ benefit into account in income. Institutions' approaches may differ noticeably, so it is worth comparing offers from several banks before deciding.

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