Last weekend The Monetary Policy Council decided not to change interest rates. The main reference rate remained at 0.10%. – the lowest ever. Despite this, already in October, not the first installment increase should be prepared credits mortgage – informs the analyst of Expander, Jarosław Sadowski.
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Loan installments will increase drastically? The expert talks about the trap of low interest rates
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Mortgage loans may become more expensive in October
The reason for the more expensive loans is the WIBOR rate, which increased from 0.21 percent. up to 0.24 percent Increases usually occur in October or November. Initially, they will be small and installment credit 300 thousand PLN for 25 years will only increase by PLN 4.5.
Sadowski writes that this is just the beginning, because the WIBOR rate will most likely continue to grow as the increases Stop NBP will become more and more likely as they are already introduced. WIBOR rate increase from 0.21 percent. to 1.71%, i.e. to the level from before the pandemic, would increase the installment of the aforementioned loan by PLN 236 (from PLN 1,334 to PLN 1,570).
How to protect yourself against an increase in the mortgage installment?
For this purpose, you can choose the so-called fixed interest rate, in which the installment does not change for the first 5-7 years, even in the event of an increase in interest rates. Only after this period is the interest rate adjusted to the then applicable level interest rates. If then the WIBOR rate is much higher than now, the installment will increase sharply. Until then, the borrower has a few years of peace.
However, such a variant means a higher interest rate than in the case of a floating one. The average floating rate is now 2.44%, and the fixed rate is 4.04%. (for a loan with own contribution, 20%). This difference was slightly smaller a month ago. Banks are aware that the time of interest rate hikes is approaching, so they are increasing fixed interest rates for new clients who just want to take advantage of such an offer.
W ING Bank Śląskie Province in August it was possible to obtain a fixed interest rate of 3.98 percent, and now it is 4.25 percent. IN PKO BP the rate increased from 3.39 percent. to 3.59 percent, and in Bank Millennium from 3.85 percent. up to 4 percent It’s just the beginning. Unfortunately, we will probably see more such hikes in the near future. So if someone would like to secure a low interest rate for a few years, he should hurry up.
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