In recent weeks, Polish media have frequently reminded the public that Poland currently has the highest interest rates on new mortgages in the European Union. Experts from RynekPierwotny.pl have also recently analyzed this topic. However, it’s important to remember that interest is not the only cost faced by consumers taking out a mortgage. It is therefore worth looking at data on the APR (Annual Percentage Rate of Charge) for new mortgage loans across various countries.
To begin with, it’s worth noting that the European Central Bank provides data on the average APR for new mortgage loans for only a handful of EU member states. Statistics for APR on new consumer loans are more widely available. Nevertheless, the figures presented in the table below deserve attention. They show the average APR for February on new mortgages in eight countries, alongside the average nominal interest rate, which is naturally lower. The difference between these two indicators primarily reflects the cost of loan-related fees and insurance.
In the case of Poland, the average APR for new mortgages in February was the highest among the countries analyzed. It is highly likely that Poland also had the highest total cost of new mortgage loans across the entire European Union. What stands out is not only the significant difference between Poland’s average APR (8.42%), the Czech Republic (5.05%), and Germany (3.63%), but also the relatively large share of additional costs (e.g., commissions and insurance) in the Polish APR. However, these extra costs are not as pronounced as in Romania, which clearly stands out among the analyzed countries.
Author: Andrzej Prajsnar, Expert at RynekPierwotny.pl
Source: https://ceo.com.pl/nowe-kredyty-mieszkaniowe-w-polsce-najdrozsze-w-ue-takze-pod-wzgledem-rrso-70133
