What will 2012 be like on the mortgage market? Creditor financial comparison analysts prompt – who should hurry next year to take out a home loan, who will find it harder and who will find it easier.

Government laws, recommendation of the Polish Financial Supervision Authority – all this makes 2012 a slightly different year on the credit market. On the one hand, the lender will be comprehensively notified of all details of the loan, on the other hand, it will be slightly more difficult to receive a loan at all. Experts from the financial comparison website Creditor clarify the whole situation.

Last year of the family on its own

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At the end of 2012, Rodzina na Swoim expires – a program of government subsidies for mortgage installments. Such a provision was included in the amendment to the Act, which entered into force in August this year. On the other hand, the government is required to submit a project for another program to support families in purchasing their own housing.

In fact, now the Family on its own expires on its own. All because the aforementioned amendment a few months ago significantly reduced the number of apartments that can be purchased with a mortgage taken under the program. The property price conversions have been lowered, which means that currently, for example, the price of 1 square meter of an apartment from the secondary market in Warsaw must be a maximum of USD 5,148 so that the State Treasury contributes to the installments for the purchase of this property. It’s very little.

Recommendation SII – lower sums borrowed, fewer loans in euros?

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By the end of 2011, banks should comply with the amended Recommendation SII, created by the Polish Financial Supervision Authority. Two entries of this document will hit Poles particularly hard. The first of them stipulates that when granting a mortgage for a period of over 25 years, the bank must carry out an analysis of the customer’s creditworthiness for a 25-year repayment period. So – if someone wants to take a loan for 30 or even 40 years, they must prove that they could cope with repayment in 25 years. The simple relationship “the longer the loan period taken into account when analyzing creditworthiness, the higher the available loan amount” shows that, given the 25-year (and not e.g. 40-year repayment period), the bank will be able to borrow less . Therefore, in 2012 some borrowers will not get as much money from the bank as they would like.

In addition to ensuring maximum security for the banking sector, the Polish Financial Supervision Authority has another purpose – it wants to reduce foreign currency loans to the rank of products available only to a narrow group of the most reliable borrowers. Hence the second provision of the recommendation – the installment of a foreign currency liability will not be able to exceed 42 percent. the borrower’s average monthly net salary. The existing, not so strict limit – 65 percent remains for people taking out a loan in USD. for people earning above the national average and 50% for others.

Banks are not in a hurry to implement the new rules and maybe not all procedures will be operational from January 1, but surely in 2012 banks will be even more rigorous in verifying the creditworthiness of Poles – not everyone will be lent the amounts they will apply for. Also, not everyone will receive a foreign currency loan. The only recipe for recommendations is only higher earnings.

The Consumer Credit Act also applies to mortgage loans

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From December 18 this year. the amended Consumer Credit Act applies. First of all, it changed the qualification of consumer credit – now it is liabilities up to the amount of USD 255 550, and not, as before, 80 thousand. zł. Therefore, several provisions of the Act will apply to mortgage loans. They are positive from the borrower’s point of view.

Before signing the contract, each lender or credit intermediary will have to provide the borrower with an information form with the characteristics of the commitment. What is very important – the document will be unified for each bank and a customer having several copies from different institutions will be able to easily compare, by row, specific parameters of liabilities in each bank. Such a form, apart from e.g. the amount of the loan or the interest rate and the method of its determination, will also have to include rules on determining the amount of the currency spread and information on its impact on the amount of the loan and installments, information on the need to conclude other contracts (e.g. insurance contracts), specified costs one-time and periodic ones related to credit, etc. In a word – the information will be comprehensive.

The Act also specifies what should be included in the loan agreement. An interesting provision is that if the borrower finds that his contract does not contain what he should have, he has the right to return the loan without interest and other costs due to the lender for a period of 4 years.