Mortgage Austria 2025: Rates, Requirements & Comparison
Mortgage in Austria 2025: Current interest rates, KIM-V regulations, equity requirements and tips for optimal home financing.
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Owning a home is an important life goal for many Austrians. But financing a property needs careful planning. In this guide, you'll learn everything important about mortgages in Austria in 2025.
The KIM-V Regulations - What You Need to Know
Since August 2022, strict rules apply in Austria for granting mortgages. The KIM-V (Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung) aims to prevent over-indebtedness.
| Requirement | Value | Meaning |
|---|---|---|
| Equity | Minimum 20% | Of purchase price incl. additional costs |
| Debt Ratio | Maximum 40% | Payment to household net income |
| Term | Maximum 35 years | Total loan duration |
Example: For a purchase price of €300,000 (incl. approx. €30,000 additional costs), you need at least €66,000 in equity (20% of €330,000).
Types of Property Loans
1. Classic Mortgage
The classic mortgage is used for purchasing apartments, houses, or land. The property itself usually serves as collateral (mortgage).
Typical terms:
- Loan amount: €50,000 to €1,500,000
- Term: 15 to 35 years
- Interest rate: variable, fixed, or mixed
2. Construction Financing
Specifically designed for new construction. Disbursement often occurs in tranches based on construction progress.
Special features:
- Disbursement based on construction progress
- Possible commitment fees
- Construction monitoring by the bank
3. Home Improvement Loan
For renovation, modernization, or conversion of existing properties.
Advantages:
- Often lower amounts possible
- Shorter terms
- Simpler processing
4. Refinancing
Replacing existing loans with better terms.
When does it make sense?
- Interest rates have dropped significantly
- Better creditworthiness than at original signing
- End of fixed-rate period
Interest Rate Types Compared
| Rate Type | Advantages | Disadvantages | Suitable for? |
|---|---|---|---|
| Variable Rate | Often cheaper initially, flexible | Interest rate risk | Risk-tolerant, short terms |
| Fixed Rate | Planning security, constant payment | Often higher initial rate | Security-oriented |
| Mixed Rate | Balance of both | More complex structure | Diversification seekers |
Current Interest Rate Situation 2025
Interest rates for mortgages in Austria depend on:
- ECB Key Rate - Basis for all loan rates
- Borrower's Creditworthiness - Better = cheaper
- Loan-to-Value Ratio - Loan amount vs. property value
- Fixed-Rate Period - Longer = higher premium
Tip: Interest rates can change daily. Always get multiple offers and compare not just the interest rate, but also the APR (Annual Percentage Rate), which includes all costs.
Documents You Need
Personal Documents
- ✅ Valid passport or ID card
- ✅ Current residence registration
- ✅ Last 3 payslips
- ✅ Tax returns (for self-employed)
- ✅ Statement of existing loans and liabilities
- ✅ Bank statements from the last 3 months
Property Documents
- ✅ Purchase contract or binding offer
- ✅ Current land register excerpt
- ✅ Building permit and plans
- ✅ Energy certificate
- ✅ Cost estimates (for new builds/renovations)
- ✅ Photos of the property
Additional Costs When Buying Property
Don't forget the additional purchase costs - in Austria, these amount to approximately 10-12% of the purchase price:
| Cost Type | Amount |
|---|---|
| Property Transfer Tax | 3.5% of purchase price |
| Land Registry Entry | 1.1% of purchase price |
| Notary Fees | approx. 1-3% of purchase price |
| Real Estate Agent Fee | up to 3% + VAT |
| Mortgage Registration | 1.2% of loan amount |
5 Tips for Optimal Financing
1. Maximize Equity
The more equity you bring, the better the terms you'll receive. Ideal is 30% or more.
2. Compare Offers
Get at least 3-5 offers from different banks. The differences can amount to several thousand euros.
3. Factor in Additional Costs
Plan for additional purchase costs of 10-12% - these usually need to be paid from your own funds.
4. Build in a Buffer
Don't calculate too tightly. Unexpected expenses can always arise.
5. Negotiate Extra Repayments
Make sure you have the option for free extra repayments to pay off the loan faster.
Compare Mortgages Now
Use the free comparison from durchblicker.at to find the best terms for your property financing.
Compare Mortgages
Conclusion
A mortgage is a long-term commitment that requires careful consideration. However, with the right preparations and a thorough comparison, you can save thousands of euros. Keep the KIM-V regulations in mind, bring sufficient equity, and compare multiple offers.
As of December 2025. All information without guarantee. Interest rates and terms may change at any time.
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Information as of: November 2024. All information without warranty. Changes and errors excepted.