A few days ago we reported that, according to the forecasts of analysts of one of the banks, interest rates in Poland will fall more sharply within a year than in the USA and euro zone countries. And although interest rates remained unchanged in February, – as assessed by Ludwik Kotecki, a member of the Monetary Policy Council (MPC), which co-decides on the level of interest rates – “there is room for another rate cut, and maybe not the last one”.
See also: When will the loans become available? “This will be a very good time to make another cut.”
Further information on the level of interest rates in Poland is closely watched by mortgage loan holders. They know that a reduction in rates should translate into lower mortgage loan installments.
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At the same time, many people do not actually know how interest rates actually affect consumers' mortgage loans. Conscious credit management and reacting to the Monetary Policy Council's decisions allows you to avoid unpleasant surprises and optimize debt costs.
How do interest rates affect a mortgage loan? Guide for 2026
As explained by KredytowyPoradnik.pl, the mortgage interest rate consists of the bank's margin and the base rate (e.g. WIBOR, soon POLSTR). It is the base rate that changes with the decisions of the Monetary Policy Council.
When rates rise, the loan installment goes up. When rates fall, the loan installment decreasesbecause interest is calculated based on the lower interest rate. Higher rates mean higher installments and lower creditworthiness. When rates fall, banks can lend more because the installments are lower.
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It is worth remembering that the installment is updated according to the schedule specified in the contract (e.g. every 3 months for WIBOR 3M). This means that actually lower installments may appear for borrowers only after some time.
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The situation is slightly different with a loan with a fixed interest rate. In this case, changes in rates do not affect the installment for a specified period of time. This is due to the fact that the loan agreement usually includes a period of time (e.g. 5 years), after which the bank will adjust the offer to the current rate level. In such cases, a new, fixed rate or a change to a variable rate is most often proposed.
Interest rates and mortgage loans. Guide for 2026
With a variable interest rate mortgage loan, each decision of the Monetary Policy Council may mean a higher or lower installment. For example, a rate reduction of 0.25 pp for a loan of PLN 500,000. PLN for 20 years means a decrease in the installment by approximately PLN 70.
How can you take advantage of potential interest rate cuts in 2026? According to the website KredytowyPoradnik.pl, when interest rates increase, it is worth considering switching to a fixed interest rate and ensuring a financial cushion.
See also: Six ways to invest from PLN 10,000 zloty. Fund expert advises
In turn, when interest rates drop, it is worth checking the possibility of refinancing or overpaying the loan. Banks adjust margins to the market situation, so it is worth negotiating the terms.
Low rates mean higher margins, high rates mean lower margins. It is worth blocking the interest rate when increases are forecast, and overpaying the loan when the installments decrease. Importantly, calculators available online will help you estimate how changes in rates will affect our mortgage loan and the amount of the monthly installment. It is worth taking this into account when making any plans for the coming months.
