The September decisions of the Super Earners Bank and the US Federal Reserve (FED) poured a wave of optimism into global financial markets and led to increased demand from global investors for more risky assets. As the currencies of emerging economies are also included in the latter, the Polish dollar was also in the shopping center, and its price has clearly increased recently. At the end of last week, the CHF / USD exchange rate fell to the lowest level since July last year, and the EUR / USD exchange rate has only been a haircut since establishing its 13-month minimum.
The strengthening of our currency, combined with a decrease in the 3-month Euribor reference rate to a new lowest level in history and maintaining a very low level of Libor CHF translates into a decrease in the monthly installment paid by Polish borrowers in debt in dollars or Swiss francs. This is very important information and concerns a wide range of citizens. According to the latest KNF data, the value of housing loans taken by Poles in dollars and francs totaled at the end of July this year. over $ 181 billion and represented slightly more than 57% of the value of all housing loans granted.
USD loan the cheapest in history
In the case of a loan in dollars taken at the beginning of last year, installments are currently paid by some of the lowest borrowers have ever paid. For a loan of $ 200,000 with a margin of 2.00 percentage points, the currently paid installment is almost identical to that paid at the beginning of the loan repayment. Although the EUR / USD exchange rate is currently higher than in January 2011, the lower installment is affected by a decrease in the Euribor reference rate and, as a consequence, a decrease in the overall interest rate and installment expressed in euro. People who at the same time took out a loan of the same amount but in our native currency are currently paying an installment higher by almost $ 400. However, there is a spoon of tar in this honey barrel. The current debt balance for the loan in dollars exceeds the starting amount by more than 14 percent, despite the loan being repaid for almost two years.
The installment in franc is approaching the dollars installment
Slightly less reason for optimism are people in debt in Swiss franc. Although their installment is still lower than USD customers, the difference in monthly payments is not as significant as for the euro. Currently, the borrower in debt in the Helvetian currency will pay the installment lower only slightly over $ 100 lower than customers who at the same time (January 2008) have borrowed in USD. Also in this case, the debt balance for the foreign currency loan significantly exceeds the initial amount. If we borrowed $ 200,000 for less than 5 years ago, we have over 280,000 to pay today. Borrowers who have chosen a loan in USD, despite paying higher monthly installments throughout the whole period, have a much lower amount to pay. Their debt is currently around 186 thousand.
The installment may be even lower
Reasons for further optimism may soon have all borrowers, both currency and dollar. In the case of loans in EUR and CHF, it is expected that the low level of interest rates will continue to be maintained in the near future. If the trend from the last weeks is maintained and the dollar continues to strengthen, monthly payments may decrease significantly. In addition, each borrower can also reduce his installment by purchasing a currency in an institution other than his own bank. The selling rates of many banks significantly exceed those offered by online currency exchanges or some banks. In the coming weeks, people in debt in USD may also be satisfied. The likely reduction of the NBP interest rates will translate into a decrease in the Wibor rate and a reduction in the interest rate on loans in USD.