Polish borrowers rush to refinance mortgages as rates fall

Polish home‑loan borrowers are accelerating refinancing after a series of interest‑rate cuts. Data from the Credit Information Bureau show the average mortgage loan reached a historic 506,640 zł in June 2026, a 6.2 % rise year‑on‑year. Most borrowers who took mortgages in 2023‑24 accepted variable rates around 7‑8 %, but current new‑loan rates are just under 6 %, prompting many to switch banks. Refinancing now accounts for about one‑third of all new mortgages, up from roughly 14 % a year earlier, and can lower monthly payments by up to 800 zł. In the first five months of 2026 banks issued around 130,000 new home loans, nearly 50 % more than the previous year. Personal stories illustrate the anxiety: Dominika and Bartosz, who took a 300,000 zł loan in 2020, say the mortgage consumes a third of their household budget and fear job loss or illness, but credit‑payment holidays during the pandemic provided a safety net.

The shift toward fixed‑rate products is also evident, with over half of borrowers now choosing period‑fixed interest, and 61 % opting for a fixed‑rate option to shield against further rate spikes.