PKO Bank launches POLSTR mortgages as WIBOR phase-out begins
Poland's largest bank began offering variable-rate mortgages indexed to POLSTR instead of WIBOR on September 3, marking the start of a regulatory transition that will end WIBOR in new loans by January 2027. Existing mortgages are not affected, but new borrowers will see different rate mechanics.
On September 3, 2026, PKO Bank Polski and its subsidiary PKO Bank Hipoteczny became the first lenders in Poland to offer new variable-rate mortgages (kredyt hipoteczny) based on the POLSTR 1M Compound Rate index rather than the long-standard WIBOR (Warsaw Interbank Offered Rate).
This is the first concrete step in a reform announced months ago: from January 1, 2027, WIBOR will no longer be permitted in new mortgage contracts. The index will continue to be published through 2036 to service existing long-term mortgages, but only for maintenance purposes.
What Changes for Borrowers
- New mortgages: From September onwards, new applicants at PKO BP will see POLSTR in their contract instead of WIBOR
- Existing mortgages: No automatic change. Your current WIBOR-linked rate stays in place; conversion will happen via separate government regulation with a specific cutover date
- Rate impact: Experts caution that a lower index number (POLSTR is currently below WIBOR) does not automatically mean lower monthly payments—banks will adjust their margins, so the true cost depends on how each lender reprices the spread
Other major Polish banks are monitoring PKO's move before committing to their own POLSTR offerings. The changeover reflects EU-wide shifts away from LIBOR and similar interbank benchmarks toward overnight rates deemed more resilient.
If you are a foreigner planning to buy or refinance in Poland during 2026, consult a Polish mortgage broker (doradca kredytowy) now about which index your new loan will use and request side-by-side rate scenarios under both WIBOR and POLSTR to understand your true cost before signing.
Sources
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