![2021 mortgage loans are the cheapest ever. We check how installments decreased from 2012 to 2021 [kwoty]](https://d-art.ppstatic.pl/kadry/k/r/1/21/36/60b7806308231_o_original.jpg "2021 mortgage loans are the cheapest ever. We check how installments decreased from 2012 to 2021 [kwoty]")
Low interest rates are not only the cheapest housing loans in history. When paying off installments today, most of us can see that the lion’s share of the installments goes to pay off the capital, not the banks’ earnings. It wasn’t like that before.
Until recently, it was true that at the beginning of the loan repayment, we paid primarily interest, and only a small part of the installment was responsible for giving the bank the borrowed capital.
Mortgage loans 2021. Today we get rid of debt faster
The point is that at the beginning, we primarily paid the bank for the money we borrowed, and we did not give up our liabilities while building our property.
– Today we pay off the borrowed capital faster and we get rid of the debt more quickly. As a result, we will pay much less interest for the adventure with mortgage – emphasizes Bartosz Turek, chief analyst at HRE Investments.
But most people taking out a mortgage today choose a debt with a variable installment. There is no denying that this worked to the advantage of borrowers who have been choosing debt in their native currency for the last few years. All because interest rates in Poland have remained in a downward trend for years.
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When will mortgage installments be higher?
– Today we are at such a point that it is difficult to count on the continuation of this trend, because interest rates are already almost zero. It is very likely, therefore, that the installments of the people who are taking out today home loanswill grow someday. The hope is that the forecasts for the coming years are not too pessimistic – adds an analyst from HRE Investments.
If we are to believe the announcements, only in about 2 years we can expect interest rate hikes and consequently increasing installments.
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Taking an example – a mortgage loan of 300,000 for 25 years with an equal installment, taken out in 2005 – we show how installments have decreased since then until today. After the answer, please visit the gallery below (calculations: HRE Investments).
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