NBP has reservations about the housing loan act without own contribution
14:14
On Friday, the Sejm adopted an act on a guaranteed housing loan and on repayments of this loan made in connection with the enlargement of the household. But according to the Polish central bank, the act may increase the bank's credit risk and weaken its financial stability.
The act adopted by the Sejm provides for the granting of guarantees for housing loans by Bank Gospodarstwa Krajowego (BGK). The guarantee is to be up to PLN 100,000. Part of this amount is to be redeemed after the birth of the second and subsequent children in the borrowers' family. The act is part of the Polish Deal reform program.
In the opinion of the National Bank of Poland (NBP), the possibility of offering a loan for housing purposes in amounts above the LtV prudential limits contradicts the objective of introducing limits by the Polish Financial Supervision Authority (KNF).
In addition, the solutions included in the draft may also hinder effective response to changes in the market situation, also in the context of macroprudential supervision. It would be more difficult, for example, to react to the situation of the so-called real estate price bubble. This is a result of the fact that a possible recommendation of the Financial Stability Committee (NBP body) on this matter would be contrary to the intention of the act.
Moreover, the central bank pointed out that supporting housing purchases of people who do not have an adequate own contribution will create additional demand for mortgage loans. And this, according to the NBP, creates a risk of a further increase in price pressure in the very dynamic housing market.
