How do you finance a property in Austria in 2026?
For a property loan, Austrian banks often expect around 20 % equity plus the purchase costs of around 10 %; the exact amount depends on the bank, your creditworthiness and the collateral. Since July 2025 the regulator has recommended a loan-to-value of no more than 90 %, an instalment of no more than 40 % of net income and a term of no more than 35 years. In 2025, 86 % of new home loans were taken out at a fixed rate. Important for 2026: if you sign a fixed-rate loan by 31 December, early repayment will cost you no more than 1 % in compensation — for contracts from 2027 it is up to 3 %.
Calculate a property loan: instalment, effective rate and costs
The calculator follows the method Austrian credit intermediaries use for model calculations: purchase costs, the bank's and land register's fees financed with the loan, the monthly instalment as an annuity and the effective rate under the Mortgage and Real Estate Credit Act (HIKrG). You enter the interest rate yourself — the one from your offer.
How it is calculated: Net loan amount = purchase price + purchase costs − own funds. Added to this are the mortgage registration (1.2% of the mortgage amount: loan plus 20% security for ancillary costs), the processing fee, the filing fee and the certification of signatures. The monthly instalment is an annuity on this amount plus account fees; the effective rate is the annual rate at which all instalments together equal exactly the loan amount paid out.
Example: Loan €237,000.00, 30 years, nominal rate 3.375% variable: loan including fees €248,271.89, monthly instalment €1,102.69, effective rate 3.854 %, total €396,968.40.
The essentials in brief
- Equity: the regulator's benchmark is at least 10 % of the purchase price (loan-to-value of no more than 90 %); banks often expect around 20 % equity plus the purchase costs; the exact amount depends on the bank, your creditworthiness and the collateral.
- 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 have applied as a recommendation of the FMA (Financial Market Authority).
- Interest rates: new home loans at the end of 2025: variable 3.21 %, fixed around 3.42 %.
- Fixed rate: 86 % of new home loans in 2025 were granted at a fixed rate.
- Early repayment: with a fixed rate, currently no more than 1 % compensation; for contracts from 1 January 2027 up to 3 %.
- Financing costs: registering the mortgage (Pfandrecht) costs 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 home loans; it applied from 1 August 2022 to 30 June 2025. Since 1 July 2025 its three figures have merely been 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 deviate from them as long as their lending remains sound overall.
In practice, little has changed. Most banks still assess applications 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?
Plan on 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, so as a rule they come out of your own funds.
| Purchase price €400,000 | With 20 % equity | With 10 % equity (benchmark minimum) |
|---|---|---|
| Equity for the purchase price | €80,000 | €40,000 |
| Purchase costs incl. lien (around 11 %) | €44,608 | €45,184 |
| Total cash needed | €124,608 | €85,184 |
| Loan amount | €320,000 | €360,000 |
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 regulator's rule of thumb: the monthly instalment should be no more than 40 % of the household's net income. On €4,000 net that is €1,600 a month.
| Instalment €1,600/month | Rate 3.4 % | Rate 3.9 % |
|---|---|---|
| 25-year term | around €323,000 | around €306,000 |
| 30-year term | around €361,000 | around €339,000 |
| 35-year term | around €393,000 | around €366,000 |
Banks deduct existing loans and living costs from your income and often build in an interest rate buffer. The amount you can actually borrow 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 tracks the Euribor and can move in either direction. At the end of 2025 the two were close: variable 3.21 % on average, fixed around 3.42 %. The ECB deposit rate has been 2.50 % since 16 September 2026; in June it had been raised to 2.25 %. The actual interest rate on a home loan depends on the bank's offer, your creditworthiness and the fixed-rate period.
| Fixed rate | Variable | |
|---|---|---|
| Instalment | fixed for the agreed period | changes with the Euribor |
| Early repayment | compensation of up to 1 % (from 2027: up to 3 %) | without compensation if the notice period is observed |
| Suits | a tight budget, a long holding period | a budget with headroom, a planned sale or extra repayments |
Many banks offer hybrids: part fixed, part variable, or a fixed rate for the first 10 years.
What changes in 2027 for early repayment?
If you repay a fixed-rate loan early, you owe the bank compensation (§ 20 Hypothekar- und Immobilienkreditgesetz, the Austrian mortgage and property credit act). The compensation is capped at 0.5 % of the amount repaid early if no more than one year remains until the agreed end of the loan contract — what counts is the remaining term of the loan contract, not the end of the fixed-rate period. Otherwise the cap for existing contracts is 1 %; for loan contracts concluded from 1 January 2027, amended rules apply and the cap 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, provided the agreed notice period is observed, and up to €10,000 within twelve months can also be repaid without compensation. If you are buying in 2026 with a fixed rate, sign the loan contract before the end of the year.
What does the financing itself cost?
- Mortgage (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: vary by bank; both are negotiable.
- Account fees and insurance: some banks require life or buildings insurance.
- Since 2011, Austria has charged no fee on loan contracts (Kreditvertragsgebühr).
Are there subsidies?
Yes, but they are run by the provinces. Vienna and Lower Austria support ownership with subsidised loans or grants, usually for a principal residence and depending on income. Each provincial government publishes its current conditions; check them before you get your financing commitment, because some schemes require you to apply before the purchase.
What applies to buyers from abroad?
Buyers without Austrian income can get a loan, but on stricter terms. In our experience, banks require 40–50 % equity from them, and income from within the EU is accepted 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
- Work out the budget. Weigh up your equity, the purchase costs and the instalment you can realistically afford.
- Gather the documents. Payslips or annual accounts, bank statements, existing loans, identity document.
- Compare offers. Two or three banks or an independent financing adviser; compare the annual percentage rate (APR), not just the nominal rate.
- Financing commitment before the purchase offer. With a commitment in hand, you negotiate the price from a stronger position.
- Purchase offer subject to financing. If the loan is refused, you are not bound.
- Loan contract, mortgage, 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, if you wish, accompany you to the bank or to independent financing advisers who obtain offers from several banks — for buyers from abroad as well. We are not a credit intermediary. View current properties or book a consultation.
Note: This page provides general information as of 02.10.2026 and does not replace legal or tax advice in an individual case. We advise you personally on your situation and involve a lawyer or tax adviser where needed.
Frequently asked questions
How much equity do you need for a flat in Austria?
The regulator's benchmark is at least 10 % of the purchase price. Banks often expect around 20 % equity plus around 10 % purchase costs; the exact amount depends on the bank, your creditworthiness and the collateral.
Does the KIM Regulation still apply in 2026?
No. It expired on 30 June 2025. Since 1 July 2025 its figures — 90 % loan-to-value, 40 % debt service ratio, 35-year term — have applied as an FMA recommendation.
How high can the instalment be?
No more than 40 % of the household's net income, according to the FMA benchmark. Existing loans are included.
What are interest rates for home loans in Austria?
At the end of 2025, new variable home loans were at 3.21 %, fixed-rate ones at around 3.42 %.
Fixed or variable rate — which is better?
A fixed rate protects against rising instalments and suits tight budgets. A variable rate can be repaid early without compensation, provided the agreed notice period is observed. In 2025, 86 % of borrowers chose a fixed rate.
What does it cost to repay a loan early?
With a fixed rate, no more than 1 % of the amount repaid; 0.5 % if no more than one year remains until the agreed end of the loan contract — what counts is the remaining term of the loan contract, not the end of the fixed-rate period. For contracts from 1 January 2027 the cap rises to 3 %. Variable loans can be repaid without compensation, provided the agreed notice period is observed.
Can I include the purchase costs in the financing?
Only to a limited extent. Most banks expect the purchase costs to come out of your own funds.
What does registering the mortgage cost?
1.2 % of the amount entered in the land register. As banks usually register around 120 % of the loan sum, the fee comes to more than 1.2 % of the loan.
Can foreigners get a home loan in Austria?
Yes, with more equity and verifiable income. In our experience 40–50 % equity is usual; EU income is accepted more readily.
When should I sort out the financing?
Before the purchase offer. A financing commitment strengthens your negotiating position, and a financing proviso in the offer protects you if the loan is refused.
This guide does not replace financing or legal advice.
Sources
- https://www.fma.gv.at — Finanzmarktaufsicht (FMA), Austrian Financial Market Authority – residential property loans, circular on sound lending
- https://www.oenb.at/news-und-events/presse/presseaussendungen/2026/20260320.html — Oesterreichische Nationalbank (OeNB), press release of 20 March 2026
- https://www.oenb.at — Oesterreichische Nationalbank (OeNB) – interest rates and exchange rates
- https://www.ris.bka.gv.at — § 20 HIKrG, Hypothekar- und Immobilienkreditgesetz – RIS, Austrian legal information system
- https://www.oesterreich.gv.at/de/themen/bauen_und_wohnen/wohnen/8/Seite.210150 — oesterreich.gv.at, official Austrian government portal – additional costs when buying a flat or plot, “Nebenkosten beim Wohnungs- und Grundstückskauf”