• Low interest rates make you want to purchase a house on credit? Be prepared for an increase in installment rates in the future.
• We have prepared a calculator, which indicates by how much an installment of a loan will increase when its interest rate changes.
• Visit finanse.uokik.gov.pl. Calculate and don’t miscalculate.

The purpose of the ongoing "Calculate and don’t miscalculate" social campaign organised by the President of the Office of Competition and Consumer Protection (UOKiK) is to draw consumers' attention to i.a. the risk of rising interest rates and, consequently, rising mortgage loan rates.

Interest rates are set by the Monetary Policy Council and affect the interest rates on loans. Since May 2020, the main reference rate is at a record low - 0.1 percent. (as of 22 September 2021) For comparison, in March 2015, it was 1.5 percent, and in 2013 – 4 percent. For many people, this is an incentive to take out a loan and invest in real estate property, but you should be aware that rising interest rates will mean rising loan installments. Use the calculator prepared by UOKiK to check what how your installments may change – go to finanse.uokik.gov.pl.

- Low interest rates equal lower loan installments, but they involve a risk – when they rise, consumers will pay higher installments. The vast majority of loans are based on floating interest rates, which means that as interest rates change, so does the installment rate. It's a good idea to overpay your loan – even in smaller amounts – especially when interest rates are low This way, any increase in installments will be less noticeable to your wallet – says Tomasz Chróstny, the President of UOKiK.

You can check the indicative installment rate for different interest rates yourself using the calculator. Go to finanse.uokik.gov.pl and enter the parameters of your loan – the amount you have to repay, the installment rate or interest rate and the payment date of the last installment. The calculator will give you 10 results – for cases when the interest rates rise from 0.5 percent to 5 percent.

In accordance to the Act on mortgage loan, the lender shall outline the risks associated with an increase in the installments on the information form and shall calculates the installment for different interest rates. According to the recommendation of the Polish Financial Supervision Authority, the consumer must sign a statement that he or she is aware of the risk when taking out a mortgage loan with a floating interest rate. - I urge borrowers to prepare themselves for possible higher installments – it would be good to estimate now how they can change in the future. I encourage the use of the financial calculator that we have prepared. People who are now only thinking about applying for a mortgage loan should very carefully study the bank's calculations, which present a simulation of the installment increase, according to the President of UOKiK, Tomasz Chróstny.

Are you planning to take out a loan?

• Check the calculator available at finanse.uokik.gov.pl to see how a change in the interest rates can affect your installments.
• Banks offer mortgage loans with floating, fixed and periodic fixed interest rates. The first are associated with the greatest risk – the safest loans are those with fixed interest rates that apply over the entire loan term. You should be able to switch from a floating rate plan to a fixed or temporarily fixed rate. This stems from Recommendation S of the Financial Supervision Authority. Check the cost of such an operation and the terms of the offer.
• Are you taking out a mortgage loan? Read the information form. You will receive it before the contract conclusion from any lender, broker or agent. This will make it easier for you to compare offers, as the form includes information about i.a. the total loan amount, the repayment terms, the interest rate and the rules for changing the rate.
• Pay particular attention to the simulation of mortgage installment upon a change in interest rates. Are you prepared for higher installments after a few years?
• You have the option to overpay your loan or pay it off early at any time. See your contract and the table of fees and comissions for the conditions under which you can do this.

"Calculate and don’t miscalculate!" is the name of the social campaign organised by the President of UOKiK. UOKiK prepared two 30-second video spots for TV and radio. They warn of the real loss of invested funds and point out the inability to repay the loan in the event that interest rates rise. These video spots are available on public television and radio from 6 September. They are broadcast free of charge, under Art. 31(c) of the Act on Competition and Consumer Protection. The "Calculate and don't miscalculate!" campaign video spots and other downloadable content are available on the UOKiK website.

Consumer assistance:

Telephone: 801 440 220 or 22 290 89 16 – consumer helpline
E-mail: porady@dlakonsumentow.pl
Consumer right advisers – in your town or district

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL