The government has confirmed credit holidays for 2024! What income criterion will be asked? Get the facts

Credit holidays in 2024 are already confirmed. However, there is a problem: the income criterion will be introduced, which will limit access to the option to suspend installment payments. Are you paying off or planning to get a mortgage? Check out what’s already known about helping borrowers in the coming year.

Contents

1. There will be credit holidays in 2024. What income standard will be introduced?
2. Credit holidays – how many months?
3. Credit Holidays 2024 – What are the rules for suspending installment payments?
4. Suspension of mortgage payments means significant costs for banks

There will be credit holidays in 2024. What income standard will be introduced?

extension Government loan holidays For 2024, long-awaited by many, has finally been officially confirmed. On September 21, Prime Minister Mateusz Morawiecki announced this, adding that There will be an income standard, the amount of which has not yet been determined. At the moment, only a political decision to extend the holidays has been made, and the details will only be worked out. The Prime Minister just said that New income standards will be ‘fair’.

– We are extending credit holidays for the entire next year. We will apply the income criterion. We do not want those who are richer and wealthier to benefit from it. Those who can afford to pay should pay, Morawiecki said in an interview with Polsat News.

Credit holidays – how many months?

Let us remember that statutory loan holidays were introduced in July 2022 as a form of assistance to borrowers who are having problems repaying their obligations due to the increase in interest rates. However, in practice, anyone who has repaid a mortgage loan in Polish złoty can benefit from holidays in 2022 and 2023, regardless of their financial situation. In 2023, regulations allow this – Suspending the payment of one installment every quarter. There are no known rules for 2024.

– During the loan moratorium period, do not pay any installments of the loan principal and interest (excluding any fees under the loan insurance agreement) – says Prime Minister’s Advisory. The bank confirms acceptance of the application within 21 days from the date of receipt. Failure to confirm does not affect the start of the comment period.

According to data from the Credit Information Bureau, credit holidays are until April 30, 2023 The owners of 1.13 million loans benefited. For some people it was a respite from high repayments, for others it was an opportunity to pay off their excess debt. Contrary to appearances, not all eligible people decide to take advantage of the subsidy.

– The NBP report on the stability of the financial system indicates that in the period from October 2022 to February 2023, the share of borrowers who took advantage of the holidays was 65%-70% – says Andrej Brajsnar, expert at the RynekPierwotny.pl portal.

Credit Holidays 2024 – What are the rules for suspending installment payments?

Detailed rules for credit holidays 2024 Not known yet. The only certainty is the introduction of an income criterion (the amount of which has not yet been determined). This means that those with higher incomes will not benefit from this option.

at that moment It is not known how many premiums could be suspended in 2024. You are expected to apply for credit holidays in the same way as currently, i.e. from your lending bank in writing or electronically.

Experts from the RynekPierwotny.pl portal, in turn, point out that it may make sense to introduce a rule stating that only people who are already experiencing financial difficulties can take advantage of the holidays. However, such ideas have not been mentioned in government statements.

Author: Simon Starnowski/Grupa Murator

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Suspension of mortgage payments means significant costs for banks

Although people repaying housing loans will certainly be happy to extend the loan holiday period, it must be remembered that this The relief for borrowers means a greater financial burden on banks. According to data from the Polish Financial Supervision Authority, in 2022, the total cost to banks amounted to PLN 13.41 billion. The rate was so high that last year eight banks exceeded the critical levels of the indicators that initiated the recovery plan (although seven of them ultimately decided that they could cope and refrained from taking further steps).

– The Polish National Bank (…) points out that the cost of banks’ credit holidays turned out to be disproportionately high compared to the low costs of credit risks. The Polish National Bank calculated that the banking sector paid the same amount to suspend installments with at least a five-fold increase in the pool of low-value housing loans in PLN – says an expert from the RynekPierwotny.pl portal.

At the same time, despite these additional costs Banks ended 2022 with profits of PLN 12.4 billionIt is twice as large as it was in 2021.

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