Our Austrian Mortgage advisor is Gerald
He has many years experience in the financial services field in Austria. He speaks English, so you can be assured that your requests are dealt with in either German or English
Can I get a Mortgage for Austrian property?
Austrian banks are keen to lend but do not expect the 95% mortgages of the UK. A 40% deposit is usually required, especially when lending to foreign residents but many Banks will consider to lend 70% to a European citizen..
You can get a quote more or less immediately, but to have a firm fixed mortgage offer you would need to complete a few forms and supply, copy of passport, P60 to confirm income or if self employed accountants confirmation of income. This is understandable.
The interest rates are around 2.% as at February 2015 and a 20 year term is typical. But you can get up to 30 year term. At times some of the local banks have promotions, offering mortgages at a special introductory rate....sometimes as low as 1.75 % for the first year.
It is usual for the Austrian Banks to send one of their managers or mortgage advisors to do a valuation, this is free of charge. From this valuation they will offer 60-70% of the value. But if you have already agreed a price with the seller, they will offer 60-70% of this purchase figure.
There is a set up fee for a mortgage and this tends to be 2% of the loan value. Unlike UK banks the cost is not hidden in the interest rate, but set out on your mortgage offer. Be aware then that when it comes to the amount of mortgage transferred to the Notar for you, the fees and tax on the mortgage will have been deducted..typically a 100,000 mortgage will have bank costs of around 3,500 euros.
Some Banks are also able to offer the first year with no monthly payments and you just pay the interest due on the loan amount each quarter.
Gerald is the Experienced Austrian Mortgage & Financial Advisor on our team, who can advise you about Mortgages in Austria. He will be able to get you a few offers to choose from, which keeps the choice in your hands and you are not getting sold a mortgage that is unsuitable for your needs.
We are here to help make your purchase in Austria as simple as possible. Please email us if you would like to know more. firstname.lastname@example.org