Franc-denominated mortgages disappearing

This is all about to change, however, as more and more banks are refusing to hand out loans denominated in foreign currencies. Starting this month Bank Ochrony Środowiska, Millennium and Raiffeisen will no longer issue loans in francs, joining Lukas Bank and DomBank.

"Banks are making it harder for customers to borrow money. Recently mBank starting refusing loans to singles. However, they quickly withdrew this ban," Siwek said.

Homeowners who already have a franc-denominated mortgage, however, might be seeing a reduction in monthly payments by the end of the year, partly brought about by an expected drop in the London Interbank Offered Rate (LIBOR). The złoty/franc exhange rate is also expected to stabilize.

"Monthly installments should be about zł.300 lower than they were two or three months ago," Katarzyna Siwek, a senior analyst at Expander, told Lokale Immobilia.

She explained that installments on a zł.400,000 loan taken over a 30-year period were zł.2,557 on October 10, when the LIBOR reached 3.13 percent. The rate was 1.31 percent last week, meaning that monthly installments had fallen to around zł.2,080.

"The falling LIBOR will cause payments to drop, but this will be countered by a weakened złoty," Siwek said. "However, the currency is dropping in value to a smaller degree, so loan-takers would still pay less than they currently do."