Polish mortgage lenders are showing divergent approaches to pricing as the market navigates a period of elevated borrowing costs.
While the general direction for bank price lists in July was unfavorable for borrowers, with many institutions raising rates, a segment of the market continues to offer promotional discounts on home loans.
This split in strategy suggests that competition for prime borrowers remains a factor, even as the broader cost of funds pressures margins.
The divergence in bank behavior highlights the uneven transmission of monetary policy to retail lending rates.
As central banks across Europe maintain restrictive stances to combat inflation, commercial banks are adjusting their pricing models to protect net interest margins.
However, the persistence of promotional rates indicates that some lenders are willing to absorb higher funding costs to maintain market share in the housing finance sector.