INTEREST RATES AND NATIONAL BANK OF POLAND
Last week (May 8) National Bank of Poland cut the base rate by 0.50 percentage points. The bast rate has decreased from 5.75% to 5.25%. It was the first reduction since October 2023.
What does this mean for you?
If you are on variable rate, your mortgage rate is going to come down too. Of course it means lower monthly payments.
Variable mortgage interest rate is a combination of fixed margin and variable WIBOR (margin + WIBOR = mortgage rate). Since April 2025 WIBOR 3M has fallen from 5.85% to 5.25%, WIBOR 6M from 5.75% to 5.02% .
If you have 30-year mortgage the monthly payment should go down by around 40 PLN for every 100,000 PLN of the mortgage amount left to repay.
What if you are on fixed rate?
Now could be a good time to review your mortgage deal. Lately most banks in Poland has cut the 5-year fixed rates. Maybe remortgaging could be profitable for you.
Remortgaging means taking out a new loan to replace your current mortgage. In practice you change the bank and you have a new (lower) interest rate.
Currently (May 16) BNP Paribas offers the best five-year fixed rate at 5.90%. Some other banks also reduced 5-year fixed mortgage rates. mBank offers the rate at 6.10%, Pekao at 6.05%, PKOBP at 6.20%, ING at 6.23%.
Would you like to see how remortgaging works in practice? Let’s look here: Should I remortgage? Case study
RESIDENTIAL PROPERTIES IN POLAND
Sold apartment prices are the most accurate indication of what is happening in Polish residential property market. The official figures published by National Bank of Poland are the most authoritative source, however they come with almost two-month time delay.
Official figures from National Bank of Poland show that apartment prices in Polish biggest cities rose annually in Q1 2025. However, on a quarterly basis, prices fell in several cities.
Average cost of an apartment in Polish biggest cities in Q1 2025 – based on sold prices (in PLN per square meter) – New Build Properties
The latest report from National Bank of Poland suggests new build property prices are growing at the fastest rate in Katowice (12.40% annually), followed by Wrocław (11.00%), Gdańsk (6.90%) and Kraków (6.60%). Meanwhile, Łódź saw the lowest level of growth at 0.3%.
When it comes to new build properties, Warsaw is still the most expensive city in Poland with average apartment price at 16,383 PLN per square meter, followed by Kraków (15,686) and Wrocław (14,257).
Average cost of an apartment in Polish biggest cities in Q1 2025 – based on sold prices (in PLN per square meter) – Existing Properties
Existing property prices are growing at the fastest rate in Kraków (10.60% annually), followed by Wrocław (9.30%) and Warsaw (8.10%). However, those cities show a decline on a quarterly basis. The interesting situation is in Gdańsk where report shows annual prices growth at only 0.30% and quarterly decline at 6.70%.
When it comes to existing properties, Warsaw is also the most expensive city in Poland with average apartment price at 16,459 PLN per square meter, followed by Kraków (15,099) and Wrocław (12,279).
The report also shows that new build properties in Katowice, Łódź, Poznań and Wrocław cost much more than existing properties. The data indicates that new build properties in 1Q 2025 in Katowice are, on average, 49.7% more expensive than existing properties (in Łódź 25.4%, in Poznań and Wrocław 13.8%). In Warsaw and Kraków prices of new build and existing properties are at a similar level.
NO DEPOSIT MORTGAGES
Buying a home in Poland usually requires saving at least 10% for a deposit. However, if you want to apply for a mortgage in Poland and don’t have a deposit, you may still be able to purchase a property with a no deposit mortgage.
A no deposit mortgage, also known as a 0% deposit mortgage or 100% mortgage, is a mortgage product that allows you to borrow the full amount of the property’s purchase price. For example, if the property costs 400,000 PLN, you would borrow the entire 400,000 PLN. In some cases, you may also be able to borrow additional funds for renovation, if needed. This type of mortgage is available thanks to the Polish Government Mortgage Guarantee Scheme, formally known as Rodzinny Kredyt Mieszkaniowy. You can find more information about it here: 0% Deposit – 100% Mortgage in Poland.
One of the criteria to qualify for this program is that the price per square meter of the apartment must not exceed the set limits. If the purchase price per square meter is higher than the limit, you will not qualify for a mortgage under this program. These price limits vary by city and region in Poland and are updated quarterly by Bank Gospodarstwa Krajowego (BGK). More information is available here: https://www.bgk.pl/osoby-prywatne/mieszkalnictwo/rodzinny-kredyt-mieszkaniowy/#c26573
The table below shows the limits for the second quarter of 2024 for the largest cities in Poland and their surrounding areas:
Note: The price limits apply only to apartments/flats. There are no per-square-meter price limits if you are buying or building a house.