Sometimes you can read that over 2/3 of Poles do not have creditworthiness and thus cannot buy an apartment. Fortunately, in practice, the situation looks a bit better.

The housing situation of Poles is certainly far from ideal, as evidenced by, for example, data on the availability of flats for an average salary and crowding of rooms. It is also worth mentioning that salary increases from the last 3 years – 4 years in many cities have been completely compensated by the increase in area prices.

In the context of the poor housing situation of our countrymen, sometimes information on creditworthiness also appears. Sometimes you can read that up to 70% of Poles are unable to take out a housing loan.

Such a conclusion, however, constitutes some abuse. The experts of the Good Finance portal decided to explain why the credit situation of Poles looks slightly better than the most pessimistic reports could indicate.

Many older countrymen no longer need another home


Calculating the percentage of all Poles who cannot take a housing loan (due to lack of creditworthiness), in practice, somewhat misses the goal. The inability to borrow money from a bank to buy an apartment does not mean that someone needs such financing. In general, most Poles over the age of 50 no longer have serious housing plans.

This is demonstrated by the age distribution of mortgage borrowers. In 2018, people over 50 years old generated only 7% of the demand on the housing loan market. For comparison, the corresponding share of borrowers aged 25 – 35 years amounted to 51%.

Therefore, experts of Good Finance decided to calculate what exemplary share of the loan installment in the net income of two young people. I am talking about borrowers who bought an apartment in 2018 in one of the largest Polish cities.

The Good Finance analysis assumes that both housing borrowers earn 80% of the average net salary in the enterprise sector and want to buy a 55 sq m apartment. (for an average price of 1 sq m from a given city). The loan for an example apartment has a 10% own contribution, a 2.20% margin and a repayment period of 30 years.

After taking into account the current level of interest rates

After taking into account the current level of interest rates

It turns out that the installment share in the household’s net income is 20% (Łódź / Szczecin) – 29% (Warsaw). This is a good result because it is assumed that the housing loan installment plus other installment liabilities should not constitute more than 40% of net income.

In none of the analyzed cities, this limit (40%) would be exceeded even if the interest rate on the sample loan increased by 2.00 percentage points.

It is worth noting that the analysis of Good Finance experts does not take into account the longest loan period (35 years), which further reduces the installment’s share in the household’s net income.

The single would have more problems financing the place

The single would have more problems financing the place

The results for the sample pair of young borrowers are quite good. It should be noted that a lonely person who earns 80% of the average net salary from the enterprise sector and wants to buy a 35 sq m flat would be in a worse situation.

And the average price. Such a borrower, even at the current level of interest rates, would have an example loan installment of 25% – 37% of net income.