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Austria offers some of the most favourable mortgage terms in Europe. However, it bears noting that loans are not universally accessible to foreign citizens as many federal states have established restrictions with respect to foreign buyers.

Foreign mortgage loan terms in Austria (as of November 2016) Sources: Tranio's partners in Austria

Maximum LTV ratio
(newly-built property)
50-60%
Maximum LTV ratio
(existing property)
40-50%
Minimum and maximum
loan amounts
Fixed rates 2-3.5% p.a.
Minimum age of borrower
Maximum age of borrower
by the end of the loan term
70-75
Maximum percentage
of monthly income for mortgage
35%

Documents

To obtain a mortgage loan in Austria, you need to submit the following documents to the bank:

  • passport
  • signed property sale agreement (or signed offer to purchase)
  • proof of salary (for employees) or proof of company income (for business owners)
  • other proofs of solvency (e.g., contract for the sale of valuable property or savings account statements).

It is important to bear in mind that a bank statement by itself doesn´t prove the legal origin of funds, and Austrian banks may request additional documents to clear up any relevant questions.

All foreign-language documents must be translated into German at a professional translation agency and notarised.

Loan applications usually take 2-3 weeks for approval.

Additional costs

Non-recurring mortgage costs in Austria typically amount to 1.5-2% of the loan amount. There are also additional insurance payments of about 0.1% per year.

Additional mortgage costs in Austria (as of November 2016) Sources: Tranio's partners in Austria

Property appraisal and Due Diligence
(not applicable to newly-built real estate)
From €200 for a small flat
to €2,000 for a villa
Compulsory property insurance From 0.1% per annum
Mortgage arrangement fee 1-2% of the loan amount
Indirect notary certification costs
(may be defrayed by the bank)
From EUR 50 to EUR 1,000
(if the mortgage deed is registered
as a notarial act)
The fee paid to the trust manager
in charge of recording the property
in the Land Register
0.6% of the mortgage value
Early repayment penalty
(not applicable to "flexible"
agreements with floating rates)
0.5-1% of the remaining debt amount

Local real estate agencies, financial brokers and advisors can assist clients with obtaining a mortgage in Austria. Intermediary services cost up to 2% (+VAT) of the mortgage loan amount or up to 5% (+VAT), depending on whether the middleman is the realtor you buy the property from.