As mortgage interest rates decline, concerns about the repayment of such loans may diminish. However, this does not mean that data on the quality of mortgages has become less important. It is worth examining these figures, especially given some interesting recent changes.
Analyses of mortgage loan quality often rely on data from the Polish Financial Supervision Authority (KNF) or the National Bank of Poland (NBP). This time, experts from RynekPierwotny.pl decided to look at a lesser-known source: the Bank Guarantee Fund (BFG). Using BFG data for the entire banking sector, the chart below was prepared. It shows changes in the share of non-performing (at-risk) mortgage loans from December 2018 to April 2025. Mortgages are classified as at risk, among other reasons, if payments are delayed by more than 90 days.
The chart distinguishes between mortgages indexed to foreign currency and other mortgages (“złotówka” loans, denominated in Polish złoty). This distinction is important because foreign currency loans have exhibited significantly worse quality throughout the analyzed period. At the end of 2023, the share of problematic foreign currency mortgages was 9.6%. This was followed by a rapid decline and subsequent stabilization at around 5%–6%.
Notably, the past year saw a substantial decrease in the value of problematic foreign currency loans—from 3.7 billion PLN down to 1.5 billion PLN. Combined with the growth of the overall mortgage portfolio, this resulted in the total share of problematic mortgage loans falling to a very low level—1.42% in April 2025. Five years earlier, this figure exceeded 2.30%.
Author: Andrzej Prajsnar, expert at RynekPierwotny.pl
Source: ceo.com.pl
