Mortgages calculated in foreign currencies offer borrowers a better deal

Borrowers are turning increasingly to mortgages denominated in foreign currencies, despite the risk presented by fluctuating exchange rates. The main reason is the high interest rates charged for mortgages granted in the zloty. The Rzeczpospolita daily estimates that in the case of a zl.50,000 mortgage, the monthly repayment would be zl.831.24 over 15 years, at an interest rate of 18.72%. The equivalent mortgage in dollars would have an interest rate of 6.75%, and would have to be repaid at $105 a month, or zl.442.45. Rzeczpospolita estimates that over the next four to five years, the Polish mortgage market could be worth as much as zl.6 billion. (Rzeczpospolita, p. B4) P.W.