More expensive loans, more expensive insurance, higher own contribution.
Higher own contribution, MdM suspension and bank tax. These factors had the greatest impact on the finance of the average Kowalski. When taking out a loan or insuring a car, everyone had to take into account higher costs.
Higher own contribution, but not always
Applicants for a housing loan in 2016 had to take into account the necessity to make a higher own contribution than a year ago. Pursuant to Recommendation S of the Polish Financial Supervision Authority, which has been in force for several years, the amount of credit granted in 2016 could not be higher than 85 percent of the property value, which in practice meant the need to bring 15 percent. own resources.
A large group of banks adapted to these requirements and in order to obtain a loan it was necessary to invest more own funds. Recommendation S left, however, the option of granting a 10% loan in some cases. own contribution. According to the regulations, it is possible to insure part of the missing own contribution.
The recommendation allows the possibility
Of securing the missing amount also in the form of blocking funds on the borrower’s account, collateral on NBP or State Treasury securities and funds accumulated on IKE or IKZE, however, in practice only low own down payment insurance is accepted by banks.
This solution is used in eight banks and in so many institutions it was possible to obtain a 10% loan in 2016. own contribution. In three banks, such credit was granted without additional costs, as the insurance premium for insuring low own contribution was fully covered by the bank.
Flat for the Young – short time for submitting applications
The popularity of the government subsidy program for own contributions called Flat for the Youth (MdM) has already increased at the end of 2015. This was the result of an amendment in force since September 1, 2015, when the amounts of subsidies changed, the loan application for families with 3 children was simplified and the program was extended to include real estate from the secondary market.
By 2016, 50 percent had already been reserved from this year’s pool. measures. The remaining half of the funds allocated for subsidies was also quickly used, as from March 16 this year. Bank Gospodarstwa Krajowego has suspended the acceptance of applications for additional payments that would be launched this year.
Therefore, only the payments from 2017 and 2018 remained for borrowers. The increase in interest in funds for 2017 resulted in reaching the 50% threshold. the amount reserved in July this year, which translated into the suspension of accepting applications for the next year on July 6. Thus, for almost half of this year, borrowers interested in subsidies could only submit applications for funds from 2018.