Franc exchange rate and loan maturities. Calculations

The franc exchange rate broke through the level of 4.5 PLN on Monday morning. According to Expander’s calculations, maintaining this for most Frank borrowers means that the next loan payment will be the maximum. Borrowers on PLN also do not have good information.

Swiss franc. Higher loan rates and monthly loan payments

Before 12:00 on Monday, Swiss Franc PLN 4.5 must be paid. Aside from the sharp rise in CHF / PLN on January 15, 2015 (known as Black Thursday), this is a record rate as the franc is currently at 5.17 PLN.

Taking into account the current situation of the currency market, Expander analyzed the cases of loans in different periods and in francs issued at different rates.

– If Frank’s current exchange rate was PLN 4.5, almost all of Frank’s borrowers would pay the highest installment in history, explains Jaroslav Sadovsky, chief analyst at Expander Consultants.

– An exception were the unfortunate ones who bought the francs needed to pay the down payments on the memorable “Black Thursday” of 2015. Then, for a while, the rate even exceeded the level of PLN 5, but at the end of the day it fell to 4.31 PLN and after 2 weeks the rate fell back below 4 PLN – he adds. According to the expert, “now, unfortunately, nothing indicates it”.

– Since the start of the epidemic, the rate has always been above PLN 4. This year, at the beginning of June, the PLN was 4.07. The increase to 4.5 PLN 189 PLN increased our sample of loan payments compared to June 2021 – analyst said.

Installments in PLN and CHFExpander

Credit in Francs – Credit calculated in slots is on the rise

“Such a high exchange rate considerably increases the debt in the slots,” notes the expert. – For a loan granted in January 2008, the loan increased by the initial 300 thousand, despite nearly 14 years of repayment. PLN up to 371,000. Zloty. So you can get the impression that this is a loan that can never be repaid – emphasizes Satovsky.

– In practice, however, the debt expressed in francs is decreasing. In the case of our loan example, as soon as the loan is paid off, it is 140.9 thousand. Francs, currently owed 82,500. Francs. However, as the exchange rate of the franc continues to rise, the amount of slots is still greater than the opening – he adds.

PLN loan payments will also increase

Jaroslav Sadovsky, Loan payments in PLN are also increasing, newly issued and repaid over many years. In this case, the reason is the increased WIBOR loads. Thanks to this, we are approaching the point where the interest rate of some PLN loans will exceed 5%.

– For example, WIBOR 6M is already 2.02%. So if the credit limit is 10 percent. To own, for example, the interest rate on the loan would be 2.7 percent and 4.72 percent. – Expertise reports.

– On the other hand, with higher interest rates, banks should slightly lower their margins on concessions. In the case of “new” loans, up to 5%. Maybe we didn’t get there as fast as in recent years – he explains.

– The disbursement of the newly issued loan with the interest rate of 4.72% mentioned above will be 1,560 PLN for 30 years, in the amount of 300,000 PLN. For comparison, in early October, when WIBOR 6M was 0.32%, it was PLN 1,268. The payment has increased by PLN 291. In addition, rising interest rates also have a significant effect on solvency. Increase in WIBOR 6M rate by 0.32%. Reducing the amount of available credit down to 2.02% to 20% means that a person who could have counted 300,000 PLN at the beginning of October will now receive almost 50,000 PLN. PLN less – explains Satovsky.

The expert stresses that the maturities of the “old” slot loans will also increase, that is to say those already repaid.

– WIBOR 6M is currently the highest after January 16, 2015. Of all loans made after this period, the closest is perhaps the highest in history. However, banks that use WIBOR 6M update the interest rate every 6 months, so for some the payout does not increase for a while – he explains.

Swiss franc loans and niche loans – comparison

Jaroslav Sadovsky compared the situation of borrowers in slots and in francs.

– In both cases, payments have increased considerably in recent times. Frankievsky pays the highest installments in history. The 30-year PLN 300,000 loan tranche was issued in January 2008 and amounts to PLN 2,022. In the case of a similar loan in PLN, the current disbursement rate of WIBOR 6M would be 1,336 PLN. So the difference is huge, but the level of interest rates in Poland will continue to rise and the loan payments in PLN could be even higher. If the WIBOR 6M, for example, increases by 3%, the payout will be 1,435 PLN – writes the expert.

He adds that comparing the amount of down payments made so far is unfavorable to owners.

– In their case, it was 282.9 thousand. Zloty. So far, the person repaying the same loan in PLN has paid 251.9 thousand PLN. Zloty. So Frankovich paid 31,000. PLN Plus. In addition, this difference grows each month because the monthly loan payments in Swiss francs are higher than in slots. In addition, the loan amount in CHF, after being converted to PLN, is 361,000 PLN. In the case of the credit in PLN and PLN, it is 202,000. PLN – he explains.

Comparison of loans in CHF and PLN since January 2008 for 300,000 PLN

Credit – ComparisonExpander

Source of key photo: PhotoRK / Shutterstock

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