Although the customers were not disappointed, banks do not hesitate to announce special offers. They decided that the activities of the Monetary Policy Council were sufficiently spectacular, which lowered interest rates eight times, bringing the base rate to 2.5 percent in July. At most, financial institutions extend earlier promotional offers for the next months and focus their media offensive on consumer loans and on persuading to save.
The margin stands still
When taking a 25-year loan encapsulated with additional products, you can still count on an average margin of 1.6 percent. and commission or insurance costs around 2.5 percent. loan amount. Such average conditions will be given to a family of three, with 6,000 income, borrowing USD 270 thousand USD for 90% or 100 percent property values - according to Open Finance analyzes.
That’s a pretty good deal. It is enough to reach for loan agreements signed in 2010 to see that our sample family had margins above 2% at the time.
Due to the decrease in interest rates, bank customers were afraid that their reduction would encourage financial institutions to increase their margins “because the customer will not notice it in installments anyway”. However, margins have consistently remained at a similar level since the beginning of the year.
Installment visibly smaller
Today, with a loan of 300,000 for 25 years, interest is about 4.3 percent. installment USD 1634. At the beginning of September last year, a customer interested in the same loan would see USD 1,900 in the repayment schedule. The almost USD 300 difference between installments a year ago and today has its power to convince.
More and more people who previously were not ready to accept higher monthly charges return for a loan. Increasingly, the motivation to take out a loan is also the fact that installments are equal to the rental fee.
But there is also some bad news. Customers who, after long deliberations, resigned from the loan and purchase of the apartment at the promotional price negotiated in spring, are coming back today for a loan for the same apartment, but without a discount.
On the threshold of change
The end of this year will be interesting for the credit market. On the one hand, customers will be mobilized to accelerate the decision to take a loan by recommendation S, prohibiting 100% loans. property values, a government subsidy program to buy the first apartment “Flat for young people” will knock on the door.
According to recommendation S, borrowers will have to have a minimum of 5 percent next year the value of the property on which they will take a loan. Banks, because they do not credit more than 95 percent. its prices. However, there is also a plus – the recommendation will extend the period for which banks count on the customer’s creditworthiness. Today, regardless of how long the customer is in debt, the bank is obliged to count its loan repayment capacity for 25 years. After the change, it will be 30 years.
At the current low-interest rate, this translates into a decrease in installments of around 9%. (with a loan of USD 300,000, the installment will amount to USD 1,485 instead of USD 1,634). As a result, the installment’s share in income will be lower, so the credit capacity will increase. When, on the one hand, queues of people willing to end their 100% loan line up at the door of the banks.