The minimum down payment will soon go up
Text from 2019. Laws, rates and prices may have changed since then. Ask an agent
The conditions for obtaining a home loan are gradually getting stricter. A few years ago it was possible to find offers with no mandatory down payment. Today some banks require a 10 per cent down payment, while others set the bar higher, at 15 per cent. From next year this figure will rise even further.
20 per cent
From January 2017 the down payment should be 20 per cent. It is quite possible, moreover, that some banks – those that already require this level of down payment – will raise the minimum threshold even higher. No wonder – they are not charities, after all.
What does the rise in the minimum down payment mean in practice? It will certainly mean that people planning to buy their own flat may, if they do not take this step now, start putting it off. With one exception – if they qualify for the Mieszkanie dla Młodych programme, they may find it a little easier, as MdM funds will become available from next year.
Is this a good moment to invest?
It is worth noting that, since obtaining a home loan will become harder, investors buying flats to earn from letting them will find themselves in a better position. There will be less risk of tenants giving notice precisely because they are moving into a place of their own.
On the other hand, you should remember the announcements about the "Mieszkanie plus" programme, as it may offset this effect.
READ ALSO – EARLY REPAYMENT OF A MORTGAGE
It may be easier towards the end of the year
At least on the primary market. That is how it was, at any rate, at the end of last year, when the previous recommendation of the financial supervision authority came into force. Many developers then offered numerous promotions aimed at attracting new buyers. If the situation repeats itself this year, it will be an excellent opportunity to buy a new flat at a good price.
What about flats on the secondary market? Some owners may lower the price slightly to complete the transaction faster. But remember that secondary-market flats often need freshening up or renovation, which may put some buyers off and will be an additional factor in price negotiations.
