Polish mortgage loan capacity declines as Middle East tensions rise

Polish banks reported a drop in median mortgage credit capacity for a three‑person household earning twice the national average. The median amount fell to 984,000 zł, about 20,000 zł less than the previous month, though it remains roughly 10 % above the level a year earlier. The decline is linked to renewed escalation of the conflict in the Middle East, which revived concerns about higher inflation and interest‑rate pressure.

Fixed‑rate mortgage rates stayed just under the 6 % psychological barrier in April and June, supported by a temporary de‑escalation of the Middle East situation. In July, the average rate rose to 5.91 % – only slightly above the average variable rate of 5.78 % – leaving uncertainty about the durability of low‑rate offers. Banks assess creditworthiness by examining income, household composition, living costs, existing debts, credit history, employment stability, down‑payment size and other factors, meaning that singles, childless couples and families with children may receive different evaluations even with similar incomes.