Poland's mortgage rates on the rise

[WARSAW] Poland's slowest economic growth in four years is eroding demand for home loans, prompting banks to increase mortgage rates as lenders refocus on more profitable consumer credit.

New home loans declined 7 per cent to 36.5 billion zloty (S$15.3 billion) last year, the least since 2005, data from the country's banking association show.

The average rate on mortgages rose to 5.2 per cent in December, the first increase in 18 months and compared with 3.3 per cent for a home loan in the euro area, according to latest figures from the Polish and European central banks.