The July index of demand for housing loans, describing the annual dynamics of the value of applied housing loans, was at the level of nearly 20%, according to a communique released by Biuro Informacji Kredytowej (BIK) .
Unflagging popularity of credits
In July 2019, the BIK mortgage demand index describing the annual growth of mortgage loans applied for stood at +19.9%. Accordingly, the value of home loans regarding which the banks and SKOK credit unions made relevant requests to BIK in July, as per working day, increased by 19.9% over the same month in 2018. In June 2019 the index stood at 19.6%, while in July 2018 at 20%.
The BIK mortgage demand index is computed as per working day, and it excludes requests regarding home loans of over PLN 1m (€231,546) and requests concerning the same borrower during 90 consecutive days.
A historical phenomenon
Meanwhile, a historic moment has come in Denmark. Nordea Bank announced that it will offer 20-year fixed rate loans at 0% interest rate. Other financial institutions from that country also announced similar decisions. For example, Jyske Bank announces 10 year loans with a negative interest rate (-0.5%), and Danes can also obtain 30 year mortgages with an interest rate of 0.5%.
A situation in which investors are willing to borrow money for 30 years and get so little profit from it means that they do not expect a rapid improvement in the market. So far, such a scenario in Poland is practically unrealistic.