Property prices may slump as KNF tightens lending policy
Chairman Stanisław Kluza said the changes will probably be introduced by the end of this year and will concern both consumer loans and mortgages granted in both złoty and foreign currencies.
Banks will now have to introduce a more realistic and rigoristic evaluation of clients'
credibility, including taking into account all loans already taken by the client. A clients credit rating was often based on the assumption that he only needed zł.477 a month to live on and the rest of his income was disposable. The real estate market is likely to be hard hit by the move as over 90 percent of apartments are bought with borrowed money.
Some analysts expect this will cause property prices will drop by as much as 12 percent.
Sources: Dziennik, Rzeczpospolita (K.K.)
Banks will now have to introduce a more realistic and rigoristic evaluation of clients'
credibility, including taking into account all loans already taken by the client. A clients credit rating was often based on the assumption that he only needed zł.477 a month to live on and the rest of his income was disposable. The real estate market is likely to be hard hit by the move as over 90 percent of apartments are bought with borrowed money.
Some analysts expect this will cause property prices will drop by as much as 12 percent.
Sources: Dziennik, Rzeczpospolita (K.K.)
