How do you finance a property in Austria in 2026?

The essentials in brief

• Equity: the supervisor's benchmark is at least 10 % of the purchase price (loan-to-value of no more than 90 %); in practice banks usually require 20 % plus the purchase costs.
• Affordability: the instalment should not exceed 40 % of the household's net income, and the term should not exceed 35 years.
• KIM Regulation: expired on 30 June 2025; since then the same figures apply as a recommendation of the FMA.
• Interest rates: new housing loans averaged 3.39 % at the end of 2025; variable 3.21 %, fixed around 3.42 %.
• Fixed rate: 86 % of new housing loans in 2025 were granted at a fixed rate.
• Early repayment: with a fixed rate currently at most 1 % compensation; for contracts from 1 January 2027 up to 3 %.
• Financing costs: registration of the mortgage lien (Pfandrecht) 1.2 % of the registered amount, plus the bank's processing and valuation fees.

What applies now that the KIM Regulation has ended?

The KIM Regulation (Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung) was a binding requirement of the financial market authority for private housing loans; it applied from 1 August 2022 to 30 June 2025. Since 1 July 2025 its three figures are merely benchmarks in an FMA circular: loan-to-value of no more than 90 %, debt service ratio of no more than 40 %, term of no more than 35 years. Banks may depart from them as long as lending remains sound overall.

In practice little has changed. Most banks still assess against the same limits; individual institutions have become more flexible on equity — usually in exchange for a higher interest rate.

How much equity do I need?

Reckon with 20 % of the purchase price plus around 11 % purchase costs if you are buying with a loan. Banks are reluctant to finance the purchase costs; as a rule they come out of your own funds.

Assumptions as in our guide Additional costs when buying property: agent 3 % + VAT, contract drafting 1.5 % + VAT, lien 120 % of the loan sum.

How much can I afford to borrow?

The supervisor's rule of thumb: the monthly instalment may amount to at most 40 % of the household's net income. On 4,000 € net that is 1,600 € a month.

Banks deduct existing loans and living costs from your income and often calculate with an interest buffer. The actual scope is therefore usually lower. Calculate your own instalment in the mortgage calculator.

Fixed or variable rate?

A fixed rate locks in the instalment for 10 to 25 years; a variable rate follows the Euribor and can move in either direction. At the end of 2025 the two were close together: variable 3.21 % on average, fixed around 3.42 %. On 17 June 2026 the European Central Bank raised its deposit rate again to 2.25 % — a signal that the phase of falling rates may be over.

Many banks offer mixed forms: part fixed, part variable, or a fixed rate for the first 10 years.

What changes in 2027 for early repayment?

Anyone repaying a fixed-rate loan early currently owes the bank at most 1 % of the amount repaid, and at most 0.5 % in the final year of the fixed-rate period (§ 20 Hypothekar- und Immobilienkreditgesetz, the Austrian mortgage and property credit act). For loan contracts concluded from 1 January 2027, the ceiling rises to 3 %.

On an early repayment of 250,000 € that is at most 2,500 € under today's law — and up to 7,500 € under a contract from 2027. What stays the same: variable loans can be repaid without compensation, and up to 10,000 € within twelve months is likewise free of compensation. Anyone buying in 2026 with a fixed rate should sign the loan contract before the end of the year.

What does the financing itself cost?

• Mortgage lien (Pfandrecht): 1.2 % of the amount entered in the land register (Grundbuch). Banks usually register around 120 % of the loan sum.
• Processing fee and valuation fee: depending on the bank; both are negotiable.
• Account keeping and insurance: some banks require life or building insurance.
• Austria has had no separate loan contract duty since 2011.

Are there subsidies?

Yes, but they are a matter for the provinces. Vienna and Lower Austria support ownership with subsidised loans or grants, usually for a principal residence and depending on income. The current conditions are published by the respective provincial government; check them before the financing commitment, because some schemes require an application before the purchase.

What applies to buyers from abroad?

Buyers without Austrian income do get a loan, but on stricter terms. In our practice banks require 40–50 % equity from them, and income from the EU is recognised more readily than income from non-EU countries. Whether you may buy at all is covered in Buying property in Austria as a foreigner.

Six steps to your financing

1. Work out the budget. Set equity, purchase costs and the instalment you can bear honestly against one another.
2. Gather the documents. Payslips or annual accounts, bank statements, existing loans, identity document.
3. Compare offers. Two or three banks or an independent financing adviser; what you compare is the effective annual rate, not just the nominal rate.
4. Financing commitment before the purchase offer. With a commitment you negotiate the price from a stronger position.
5. Purchase offer subject to financing. If the loan is refused, you are not bound.
6. Loan contract, lien, payout. The bank pays the trustee, who pays the seller after the land register entry.

How ImmoLöwin supports you

For every property we work out equity, purchase costs and the instalment in advance, and we work with independent financing advisers who obtain offers from several banks — for buyers from abroad as well. View current properties or book a consultation.