Austria: rising risks from mortgage amid real estate boom
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Author:
Julia Samsonova
According to the international news organization Reuters, the central bank reported that risks from insufficiently cautious mortgage lending are increasing amid a boom in the Austrian real estate market. It says these loans need to be carefully scrutinized.
Mortgages continued to be often more risky than the standards introduced by the Financial Market Stability Board. The Austrian real estate market is still growing faster than the eurozone one.
The FMSB's measures for a sustainable mortgage lending program include a maximum loan maturity of 35 years, a down payment of at least 20% of total financing needs, and a debt-to-income ratio of no more than 30-40% of net household income.
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