In accordance with Recommendation S introduced by the Polish Financial Supervision Authority, the minimum amount of own contribution required is gradually increasing. Last year it was 5 percent, including 10, and from January 2016 it will be 15 percent. However, it may turn out that this required contribution will still be 10 percent. the value of the apartment, which is the same as today.
Increased own contribution is a new cost for borrowers
But also banks are waiting for new costs. First of all, a bank tax of PLN 5-6 billion, in February they will have to pay a premium for BFG, over PLN 2 billion, they must fill the gap after SK Bank, it will also PLN 2 billion and set up a mortgage restructuring fund, which is about 600 PLN million The possible conversion of franc loans is PLN 13.5 billion, and the EU’s orderly bankruptcy fund, which requires PLN 15 billion over 18 years. Banks’ income will therefore decrease.
Maintaining the amount of own contribution at the level of 10 percent. in 2016 it will be possible because the missing part of the contribution can be covered with additional security.
The recommendation actually says that the maximum loan amount cannot exceed 85 percent. property value, but allows the granting of a loan of up to 90 percent, provided that you take out additional insurance covering this difference of 5 percent. Also secure this missing amount in the form of a blockage of funds on your bank account, collateral on NBP securities, the Treasury or on the borrower’s funds accumulated on IKE or IKZE accounts
Recommendation clearly states that it must be insurance
It cannot be a collateral, it cannot be an increased risk fee, a commission for a higher loan, as it is now called differently in banks. It must be a low own contribution insurance in the form in which the recommendation enforces them, and which already existed in banks a few years ago. About 2-3 years ago, most banks moved away from this typical product insurance in favor of an increased margin, which, however, was not insurance. And the recommendation clearly says that it must be insurance. We do not know yet which banks will decide on it. And in what form. What it will look like, how much it will cost, and this is important for borrowers.
Although perhaps competitive pressure
Will cause that at least some of the institutions will decide to apply these planned solutions and grant loans from 10%. own contribution maybe not everywhere, maybe not in every bank, but in a few it will be possible.
There is already information that, however, banks will have such loans with a low own contribution in the offer.
Some banks, whether officially or unofficially informs, say that in their next year the rules for granting loans regarding the LTV principle, i.e. the ratio of the loan amount to the value of the property, that this will not change, and will be the same as this year.