Poland’s Monetary Policy Council left interest rates unchanged, but mortgages are already becoming more expensive. Average fixed mortgage rates have risen to around 6.4%, while variable rates remain near 5.7%. For a PLN 500,000 mortgage over 30 years, the monthly payment gap has widened to PLN 226. Fixed-rate mortgages protect borrowers against rate increases for five years, but that protection has a price. In August, the gap between average fixed and variable rates was only 0.3 percentage points: about 6.0% versus 5.7%. It has now widened to roughly 0.7 percentage points. The average variable rate remains around 5.7%.
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