In the face of persistently high interest rates, the 2024 credit holiday program is a key support element for mortgage borrowers in Poland. In this article, we will discuss the latest changes and guidelines of the program, providing essential information for those considering taking advantage of this option.


Mortgage holidays 2024: What’s new?

The new bill introduces changes aimed at adapting the program to the current economic situation. The most important of these include:

  • A limit on the value of the granted mortgage loan, which cannot exceed 1.2 million PLN.
  • A requirement that the average arithmetic Debt to Income (DTI) for the three months preceding the month of application submission does not exceed 30%.

Guide for borrowers

To prepare for these changes, borrowers should:

  • Thoroughly familiarize themselves with the new conditions and check if they qualify for the program.
  • Consult with their bank or a credit advisor to understand how these changes might affect their individual situation.
  • Regularly follow updates related to the bill and be ready to submit their application in a timely manner.

The DTI and its impact on different groups of borrowers

Despite its apparent simplicity, the DTI (Debt to Income) does not fully reflect the financial ability of a household. It can be the same for a borrower with high income and a large loan, as well as for a person with significantly lower income but a smaller loan burden. In both cases, the RdD ratio does not reflect the real “living” amount remaining for the household after debt repayment.

The recent change, which involved lowering the DTI threshold from 35% to 30%, seems to be an attempt to tighten the criteria. However, it still does not take into account the number of people in the household sharing the income. This is a significant gap, as the real ability to repay debts can vary greatly depending on the number of dependents.

One positive aspect is that the DTI limit does not apply if the borrower supports at least three children. This appears to be a step towards a more diversified and fair approach, although it does not solve all the problems associated with the DTI indicator.

Conclusions and prospects

The 2024 mortgage holiday program faces significant challenges in terms of implementation and effectiveness. Despite good intentions, its efficiency and accessibility might be limited by complex legal and administrative requirements. This raises questions about its ability to provide tangible financial support to borrowers during challenging times.

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