4 ms·

> I have a mortage in Poland. Base rates went from 1.5% to 6.75%. My mortage’s monthly payment went from 1792PLN to 3200 PLN (~715 USD), where 3000 PLN is inter

> I have a mortage in Poland. Base rates went from 1.5% to 6.75%. My mortage’s monthly payment went from 1792PLN to 3200 PLN (~715 USD), where 3000 PLN is interest. Are fixed-rate mortgages not the norm in Poland?

gimmeThaBeet 4y ago
My understanding was that long-term fixed rate mortgages were not common at all outside of the US and like France. This is from 2010 but has some good charts. https://business.sdsu.edu/_resources/files/real-estate/research/10122_research_riha_lea_report.pdf https://business.sdsu.edu/_resources/files/real-estate/resea... Anecdotally it meshes with some things I've heard elsewhere but don't hold me to it: - Canadian mortgages are typically something like 5 years. - UK is similar, it's either variable, or fixed for something super short, like 2-3 years. - Australia same kind of boat, most are variable, I've heard the interest rates during covid temporarily reversed the trend, but same deal, they're only fixed for a few years.
- pengaru 4y ago
  That's kind of wild, even in my teens (1990s in Illinois) it seemed to be common knowledge that variable APR mortgages were a risky/Bad Idea. I had no idea they were the norm elsewhere. The cynic in me would have assumed the US led the world in predatory style lending. This country loves handing people more than enough rope to hang themselves with, while depriving them of any relevant education beforehand.
Ralfp 4y ago
No. Bank oversight comission required banks to offer fixed rate mortages only after swiss franc mortage crisis (2009), and not shorter than 5 years. What happened was banks introduced fixed mortages for 5 years, after which time you move to variable mortage, or update rates for next 5 years. Banks also made those mortages noticably pricer, so few people picked them (me included).

4 ms·

> I have a mortage in Poland. Base rates went from 1.5% to 6.75%. My mortage’s monthly payment went from 1792PLN to 3200 PLN (~715 USD), where 3000 PLN is inter

by pengaru 4y ago

gimmeThaBeet 4y ago
My understanding was that long-term fixed rate mortgages were not common at all outside of the US and like France. This is from 2010 but has some good charts. https://business.sdsu.edu/_resources/files/real-estate/research/10122_research_riha_lea_report.pdf https://business.sdsu.edu/_resources/files/real-estate/resea... Anecdotally it meshes with some things I've heard elsewhere but don't hold me to it: - Canadian mortgages are typically something like 5 years. - UK is similar, it's either variable, or fixed for something super short, like 2-3 years. - Australia same kind of boat, most are variable, I've heard the interest rates during covid temporarily reversed the trend, but same deal, they're only fixed for a few years.
- pengaru 4y ago
  That's kind of wild, even in my teens (1990s in Illinois) it seemed to be common knowledge that variable APR mortgages were a risky/Bad Idea. I had no idea they were the norm elsewhere. The cynic in me would have assumed the US led the world in predatory style lending. This country loves handing people more than enough rope to hang themselves with, while depriving them of any relevant education beforehand.
Ralfp 4y ago
No. Bank oversight comission required banks to offer fixed rate mortages only after swiss franc mortage crisis (2009), and not shorter than 5 years. What happened was banks introduced fixed mortages for 5 years, after which time you move to variable mortage, or update rates for next 5 years. Banks also made those mortages noticably pricer, so few people picked them (me included).