First, a bit of history …. 84.20% of housing loans granted in the first quarter of 2012 were loans in USD. The share of mortgage loans granted in foreign currencies (USD and Swiss francs) was 14.72% (of which only 0.07% for loans in francs). In a word, you can say: the king is dead, long live the king.
The shares of loans granted
Already in 2008 the situation was different – the share of loans granted in Swiss currency was almost 69%, and USD – 30%. What happened later, we all probably still remember well. Market collapse, increase in exchange rates, prudential measures taken by banks. All this resulted in a gradual decrease in the share of loans granted in Swiss francs.
USD loans gained the most (in the fourth quarter of 2009 their share was 72.40%, in the fourth quarter of 2010 – 76.60%, and in the fourth quarter of 2011 – 77.04%) – but not only. The USD currency tried to take the place of the Swiss franc. She partially succeeded.
The share of loans in USD in the fourth quarter of 2008 was 0.40%, and in the fourth quarter of 2011 – 17.17%. Changes in the share of mortgage loans in zlotys, Swiss francs and USDs can be traced in the chart below.
The USD march did not last long. The economic problems of some “USD” countries or financial supervision activities (Good Finance, in force since January 2012) caused that, as in the past, from loans in USD, banks are now withdrawing from loans in USD.
Does this mean that a person who is willing to take exchange rate risk should not count on it? No. There are literally several banks on the market that grant loans in the USDpean currency, but not everyone can apply for such loans.
The USD march did not last long. The economic problems of some “USDzone” countries or financial supervision activities (Good Finance, in force since January 2012) caused that, as in the past, from loans in USD, banks are now withdrawing from loans in USD.
Until recently, three banks – provided mortgage loans in foreign currency – the latter institution withdrew its offer at the beginning of August. Earlier loans taken from this bank will of course still be served.
USD loan and earnings
In the past Fine Bank had the lowest requirements for the net income. An average family could receive a loan in USD if their net monthly income was USD 6,100. Good Finance, on the other hand, set slightly higher requirements. In his case, the minimum net income necessary to receive a loan was USD 6,905.
GBank closed the top of the list. In this case, the minimum net income allowing to think about taking a loan in USDs was USD 7,050.
USD loan and the conditions for granting it
Loans in USDs are still “available”. Requirements for people who would like to finance the purchase of an apartment or building a house and take a loan in a foreign currency are so high that someone whose income is sufficient to receive a zloty loan, there is nothing to count on a loan in USD currency.
Why? First of all, due to the provisions of Good Finance of the GFIC. People who earn in foreign currency can currently only count on two offers from banks that are not very attractive.
Interest rates in the USD area are much lower than in our country. Despite this, the interest rate on loans in foreign currency does not differ much from those granted in USD – it is about 4%.
The average interest rate on loans in USD abroad, for example in Finland, is from 0.92%. In Ireland, up to 3.02%. These data clearly indicate that credit abroad is much cheaper, but unfortunately – banks provide this type of financial support only for the purchase of real estate in the country in which they operate.
It is not profitable for foreign banks to change their credit terms, because their potential customers are usually not people from our country. Therefore, Poles earning abroad can apply for a loan in USDs only in two banks. Deciding on this step is also worth using the help of a financial expert.
The conditions for granting a loan in USD are similar to those for people applying for a loan in USD. Banks pay special attention to the form of employment – it must be permanent. It is also worth having documents confirming the received income.
Remember that a mortgage is best taken in the currency in which you earn, which is insignificant cases in USD. Perhaps the paid installment will be slightly higher, but increasing exchange rates will not make you sleepless nights and heart palpitations.