Credit holidays 2024
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Where can I find the installments deferral regulations („credit holidays”)?
In 2024, the rules of installments deferral are governed by the provisions of Articles 73 – 75 of the Act of 7 July 2022 on social financing of business ventures and assistance to borrowers (the Act).
The supplementary regulations are set forth in:
- The Act of 9 October 2015 on support for borrowers who have a housing loan and are in a difficult financial situation as regards determining the Installment to Income Ratio and the definition of a household;
- The Act of 12 March 2004 on social welfare as regards the determination of income; and
- The Act of 5 December 2014 on the Large Family Card as regards the establishing the prerequisite of three dependent children.
What are the conditions for being granted the installments deferral
Under the Act, a consumer may defer the repayment of a mortgage facility (housing loan/ mortgage loan):
- only for one agreement made prior to July 1, 2022 to address own housing needs and
- provided that the amount of the granted loan is less than PLN 1,200,000,
and further provided that one for the following conditions is met:
- the arithmetic average of the Installment to Income Ratio (IIR) for the period of the last three months preceding the Application submission date exceeds 30% or
- as at the day of submitting the Application, I have at least 3 dependent children referred to in Article 4(2) point 3 of the Act of 5 December 2014 on the Large Family Card (Journal of Laws of 2023 item 2424), who meet the conditions referred to in Article 4(2b) of the said Act.
How to calculate the arithmetic average of the Installment to Income ratio?
In order to calculate the ratio describing the monthly costs of servicing a housing loan to your monthly income (IIR), please divide the amount of the monthly principal-and-interest installment (for each of three months immediately preceding the application submission date) by the income of your household (the aggregated income of all members of that household). The income calculation method is defined in the Act of 12 March 2004 on social welfare.
The IIR ratio for each month preceding the submission of the application should be calculated using the following formula:
RdD1= Mortgage loan installment for month 1 preceding the submission of credit holidays application/ net income of the household for month 1 preceding the submission of the application
RdD2= Mortgage loan installment for month 2 preceding the submission of credit holidays application/ net income of the household for month 2 preceding the submission of the application
RdD3= Mortgage loan installment for month 3 preceding the submission of credit holidays application/ net income of the household for month 3 preceding the submission of the application
The resulting amounts of the IIR ratio for each respective month should be aggregated and then divided by 3 and multiplied by 100%.
For what periods can a loan repayment be deferred?
The deferral of loan repayment is available to a consumer:
- in the period between 1 June 2024 and 31 August 2024 – for 2 months;
- in the period between 1 September 2024 and 31 December 2024 – for 2 months.
You can specify all deferral periods in one application or submit separate applications for each deferral period.
How can I be granted the loan installment deferral?
You have to submit an application for deferral of a mortgage loan installment (hereinafter the „Application”). The application should be submitted to the Bank before the payment deadline for an installment the borrower wishes to defer, provided that no later than on the last business day of the month in which the installment is due and payable.
In the Application, please:
- specify deferral periods;
- make necessary declarations – some of them entail penal liability.
What is the effect of a loan installment deferral?
During the mortgage deferral, the Borrower does not have to make payments under the agreement, except for the related insurance charges. Insurance charges should be made to the existing account number or to the account dedicated for repayment of loan installments as defined in the notification of acceptance of the credit holidays application (if the borrower repays installments from funds credited to the ordinary (ROR) account). The Bank will not debit them automatically.
The period of mortgage deferral shall not be deemed as the lending period, which means than any and all deadlines set forth in the agreement shall be postponed by the deferral period.
In a situation when the loan becomes deferred as a whole or in part on any terms other than those set out in the Act, the period of that deferral will be shortened at law as of the day when the lender receives the application submitted under the Act which automatically triggers statutory credit holidays (Article 75) of the Act.
How to apply for credit holidays:
Installments will be deferred upon application of one of the Borrowers. In the application, the Borrower shall indicate which mortgage installment(s) they wish to defer. An installment can be deferred provided that the Client submits a relevant application no later than on the last business day of the month in which the installment to be deferred falls due and payable. If a positive decision regarding installment deferral is issued after the installment has been paid, its amount will be returned to the Borrower's account used to pay the installment.
The application for credit holidays can be submitted:
VIA CITIBANK ONLINE ELECTRONIC BANKING SYSTEM, USING MY DOCUMENTS FUNCTION.
HOW TO DO THAT?
- Complete application in the PDF format
- Save the completed application
- Sign in to Citibank Online banking service
- Click “Contact”
- Click “My Documents”
- Select “Send document” > “Attach file” > “Type of document being sent” [1]> “Mortgage product document”
- Attach the saved Application file in the window
- Click “Submit”
IN AN EMAIL TO: ODROCZ.RATE@BANKHANDLOWY.PL:
- with an attached, completed application published on the Bank’s website in the form of an active .pdf file or .jpg photo with a visible signature, or
- applying for credit holidays in an email message, by entering:
- the number of the agreement regarding the mortgage product you want to defer,
- specify the proposed period of deferral (maximum four installments) by selecting a specific month during the available periods: 2 installments in the period from 1 June to 31 August 2024; 2 installments in the period from 1 September to 31 December 2024 (specify months);
- following declarations:
- I declare that the indicated agreement was concluded to satisfy my own housing needs. I am aware of criminal liability for making a false declaration.
- I declare that I have not applied for mortgage deferral with another bank and that I have not been granted such a deferral by any other bank.
- I declare that the arithmetic average of the value of the Installment to Income ratio within the meaning of Article 2(1) point 7 of the Act of 9 October 2015 on support for borrowers who have a housing loan and are in a difficult financial situation (Journal of Laws 2022 Item 2452) for the period of the last three months immediately preceding the Application submission date, exceeds 30% or I have at least three children as referred to in Article 4(2) point 3 of the Act of 5 December 2014 on the Large Family Card./li>
- I acknowledge that the Bank reserves the right to verify the truthfulness of the made declarations.
- The Bank reserves the right to revoke mortgage deferral if a declaration is found to be inconsistent with facts, in which case the borrower shall be obliged to pay the loan in accordance with the schedule under the Agreement.
- The Bank acknowledges that this Application, filed and signed by one borrower, has been filed with the knowledge and consent of the other borrowers.
- I am aware of criminal liability for making a false declaration.
BY MAIL TO THE ADDRESS: BANK CITI HANDLOWY, FABRYCZNA 17, 90-344 ŁÓDŹ, WITH A NOTE “CREDIT HOLIDAYS”,
AT A BRANCH OF CITI HANDLOWY.
The Bank charges no fees or commissions for accepting and considering applications for deferral of the agreement conditions.
No later than by the 21st calendar day of submitting the application the Borrower will be informed, on a durable medium, of the acceptance of the application for credit holidays, confirming:
- the period for which the mortgage payment has been deferred,
- the amount of premiums and fees under the concluded insurance agreements related to the mortgage loan agreements covered by credit holidays,
- settlement method due to a payment deferral granted earlier under the agreement, which has been shortened pursuant to the provisions of the Act.