Mortgages

Austria Bank Mortgages

Our Austrian Mortgage advisor is Gerald Buttinger

He has many years experience in the financial services field in Austria and works with most Austrian Banks to get the best mortgage offers for our clients. He speaks English, so you can be assured that your requests are dealt with in either German or English

Can I get a Mortgage for property in Austria?

Austrian banks are keen to lend but do not expect the 95% mortgages of the UK. A 40% deposit is usually required, especially when lending to foreign residents but many Banks will consider to lend 70% to a European citizen..

You can get a quote more or less immediately, but to have a firm fixed mortgage offer you would need to complete a few forms and supply, copy of passport, P60 to confirm income or if self employed accountants confirmation of income. This is understandable.

The interest rates are around 2.85% as at January 2011 and a 20 year term is typical. But you can get up to 30 year term. Austrian Banks are more logical when it comes to age and getting a mortgage. Instead of thinking.. the mortgage must be paid off before reaching a certain age, the Banks know that, shouil you default, they have first call on the property as their mortgage to you is registered in the Grundbuch. This is the register in the local court area and shows everythin about a property and any outstanding debts against it.

At times some of the local banks have promotions, offering mortgages at a special introductory rates...sometimes as low as 1.95%for the first 6 months.

Normally your mortgage offer has the interest rate fixed for up to one year. So, at least you know there will be no nasty increases for a long while. You can of course get fixed rate mortgages but the interest rate tends to be higher. If you want to have a fixed term, we can get a quote for you.

It is usual for the Austrian Banks to send one of their managers or mortgage advisors to do a valuation, this is free of charge. From this valuation they will offer 60-70% of the valuation. But if you have already negotiated with a seller and agreed a price for the property the bank will generally offer 60-70% of this agreed purchase figure, barring a few exceptions. But we would always recommend that you arrange your mortgage before making offers. We can advise and help with this, as a basic mortgage offer can be sent to you within a day or so. To have an approved and guaranteed mortgage offer you will need to complete the application process. Again this is pretty straight forward and you will be pleased at the simplicity in comparison to UK lenders.

There is a set up fee for a mortgage and this tends to be 2% of the loan value. Unlike UK banks the cost is not hidden in the interest rate, but set out on your mortgage offer. Be aware then that when it comes to the amount of mortgage transferred to the Notar for you, the fees and tax on the mortgage will have been deducted..typically a 100,000 mortgage will have bank and tax costs of around 3,500 euros.

Some Banks are also able to offer the first year with no monthly payments and you just pay the interest due on the loan amount each quarter.

Is it possible for me to obtain an extra mortgage amount for additional work to a property.

Yes, many lenders will advance finance based on the finsihed value of the project. But they will only trelease money from your mortgage account on production of invoices for the work undertaken. So if you want to convert a loft for more rental spacew the bank would release money to the builder on his invoice.

Gerald is the Experienced Austrian Mortgage & Financial Advisor on our team, who can advise you about Mortgages in Austria. He will be able to get you a few offers to choose from, which keeps the choice in your hands and you are not getting sold a mortgage that is unsuitable for your needs.

Our service is free and you are under no obligations. We are here to help make your purchase in Austria as simple as possible. Even if you are already buying a property from another agent! Please email us if you would like to know more..click to contact us.

Here are a few example mortgage amounts to give an idea of costs involved and the monthly payment you would need to make. Currently we are able to offer our clients 2.5%

Mortgage amount:  50000€ (70% of purchase price - maximum possible) based on 2.25%


interest rate:          2,25% 
duration:         240 months
monthly installment:    263€
register tax:           780€
fee (2%)          1000€ (included in monthly instalment)
bank account cost.           aprox: 80-100€ a year depends on bank

Mortgage amount: 75000€ (70% of purchase price - maximum possible)

interest rate:          2,25%
duration:         240 months
monthly installment:    389€
register tax:           1170€
fee (2%)          1500€ (included in monthly instalment)
bank account cost.           aprox: 80-100€ a year depends on bank

Mortgage amount:  100,000€  (70% of purchase price - maximum possible)

interest rate:          2,25%
duration:         240 months
monthly installment:    519€
register tax:           1560€
fee (2%)          2000€ (included in monthly instalment)
bank account cost.           aprox: 80-100€ a year depends on bank