Demand for mortgage loans in Poland 2017-2022

The period from March to August 2020 saw noticeably weaker demand for home loans in Poland. This state results from the outbreak of the coronavirus (COVID-19) pandemic in Poland in March 2020. Whereas April 2021 saw a dynamic increase in mortgage demand with a record demand growth of over 94 percent compared to April 2020. In October 2022, the demand for housing loans reached declined by 68.7 percent year-over-year due to the high inflation. One of the main reasons for the decline in demand was also tightening and rising interest rates that reduced the credit worthiness of potential borrowers.

Loan market in Poland

In 2021, the net value of loans to households in Poland was 769.3 billion zloty, representing an increase of 5.6 percent over the previous year. In 2021, in terms of credit type, the highest value was achieved by real estate loans granted to households. Their value amounted to over 518 billion zloty, followed by consumer loans with a total value of over 174 billion zloty.

Mortgage loans in Poland

In 2021, there has been a continuing trend of decreasing the popularity of housing loans up to 100 thousand zloty. A growing number of Poles have taken out loans of the value of over 200 thousand zloty. And the average value of a mortgage loan in 2021 increased by 15 percent compared to the previous year and amounted to over 350 thousand zloty. In this period, Poland’s number of active mortgage loans reached a record high of more than 2.5 million.