BIK: Home loan enquiries in Poland up 58.2% y/y in April

Banks and SKOKs sent to the Credit Information Bureau (BIK) enquiries for home loans in April for an amount 58.2% higher than a year earlier, the bureau reported. The number of applications rose by 55% y-o-y to 32,36 thousand, while on a monthly basis - it increased by 9%.

The average value of a housing loan applied for in April was. PLN 433,000, up 12.8% y-o-y, and up 0.6% month-on-month, it stated.

"Demand for home loans remains high, as evidenced by the fact that potential borrowers submitted loan applications in April 2024 that were over 58% higher than a year earlier. Although the number of applicants remains lower than in the second half of 2023, when the ‘2% Safe Credit’ programme was in operation, it is clearly higher (by 50-60%) than in the first half of last year. In addition, since the beginning of 2024, the number of applicants has been higher with each successive month - in April, more than 9% more people applied for a home loan than in March and as many as 43% more than in January," commented Sławomir Nosal, head of the Analysis Team at BIK.

The second important aspect determining the level of the Demand Index is the increase in the average amount of the loan applied for to PLN 433 thousand - a value almost 13% higher than in April 2023. The record amount from December 2023 is now only £2k short of the record amount, he added.

According to Nosal, real wage growth with stable interest rates has a positive impact on the increase in creditworthiness and, consequently, allows for an increase in the average loan applied for, following the increase in property prices.

Source: BIK and ISBnews