Mortgage Austria 2026: KIM Regulation & Current Interest Rates
Mortgage in Austria 2026: KIM regulation explained, current interest rates, equity requirements. Everything expats need to know about home loans.
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Mortgage in Austria 2026: What You Need to Know
Buying property in Austria is a significant investment. Since the KIM Regulation (Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung) came into force, strict rules apply for mortgages. In this guide, you'll learn everything about current interest rates, equity requirements, and your options as an expat.
Current Situation February 2026
- 📊 Fixed rates (10 years): 3.5-4.2% p.a.
- 📊 Variable rates: 4.0-4.8% p.a.
- 📊 Minimum equity: 20% per KIM regulation
- 📊 Max. monthly payment: 40% of net income
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The KIM Regulation: Key Rules
The KIM Regulation has been in force since August 2022 and sets strict criteria for residential mortgages:
| Criterion | Requirement | What This Means |
|---|---|---|
| Equity (LTV) | Minimum 20% | For €300,000 property: €60,000 equity |
| Debt Service Ratio (DSTI) | Maximum 40% | Payment max. 40% of net household income |
| Term | Maximum 35 years | Loan must be paid off within 35 years |
| Exceptions | 20% exception quota | Banks can deviate for 20% of loans |
Calculation Example: What Can You Afford?
Assumptions:
- Net household income: €4,000/month
- Desired property: €350,000
Calculation per KIM regulation:
| Item | Calculation | Result | |------|-------------|--------| | Max. monthly payment (40%) | €4,000 × 40% | €1,600/month | | Required equity (20%) | €350,000 × 20% | €70,000 | | Max. loan | €350,000 - €70,000 | €280,000 | | Additional: Closing costs (~10%) | €350,000 × 10% | €35,000 |
Total equity required: €105,000 (including closing costs)
Current Mortgage Interest Rates 2026
| Rate Type | Interest Range | Best For |
|---|---|---|
| Fixed 10 years | 3.5-4.2% p.a. | Safety-oriented, families |
| Fixed 15 years | 3.7-4.5% p.a. | Long-term planning security |
| Fixed 20 years | 3.9-4.7% p.a. | Maximum security |
| Variable (3M-Euribor) | 4.0-4.8% p.a. | Flexibility, expecting rate cuts |
Fixed vs. Variable Rate
| Criterion | Fixed Rate | Variable Rate |
|---|---|---|
| Payment Certainty | ✓ Very high | ✗ Low |
| Flexibility | ○ Limited | ✓ High |
| Extra Payments | Often limited | Usually unlimited |
| When Rates Rise | ✓ Protected | ✗ Higher payment |
| When Rates Fall | ✗ No savings | ✓ Benefits |
Our Recommendation for 2026: Given current rates, we recommend a fixed rate for 10-15 years. Rates are still historically moderate, and payment security is priceless.
Closing Costs When Buying Property
In addition to the purchase price, significant closing costs apply – these usually must be paid from equity:
| Cost Type | Percentage | For €350,000 |
|---|---|---|
| Property Transfer Tax | 3.5% | €12,250 |
| Land Registry Fee | 1.1% | €3,850 |
| Real Estate Agent Fee | 3% + VAT | €12,600 |
| Notary/Contract | 1-2% | €3,500-7,000 |
| Mortgage Registration | 1.2% of loan | €3,360* |
| Total | ~10% | ~€35,000 |
Getting a Mortgage as an Expat
Additional Requirements for Non-Austrian Citizens
| Status | Requirements | Difficulty |
|---|---|---|
| EU Citizens | Same as Austrians + Meldezettel | Easy |
| Non-EU with Permanent Residence | + Aufenthaltstitel, 2+ years in Austria | Moderate |
| Non-EU Temporary Permit | Higher equity often required | Challenging |
Tips for Expats
- Build credit history in Austria: Use an Austrian bank account for 1-2 years before applying
- Employment contract in Austria: Permanent contract (unbefristet) is best
- Higher equity helps: 30%+ equity improves your chances significantly
- Consider international banks: Some banks specialize in expat financing
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Frequently Asked Questions (FAQ)
Can I get a mortgage without 20% equity?
Generally no – the KIM regulation requires 20% equity. However, banks can make exceptions for 20% of their loans. This is possible with excellent creditworthiness, additional collateral, or special circumstances. Speaking with a mortgage advisor can help.
Fixed or variable rate – which is better?
It depends on your risk tolerance. Given current rates (February 2026), we recommend a fixed rate for 10-15 years. Payment security is especially important for families, and rates are still historically moderate.
How much can I afford with €3,500 net income?
Per KIM regulation, the payment can be maximum 40%: €1,400/month. At 3.8% interest and 25-year term, you can finance approximately €250,000-270,000. You'll also need at least 20% equity plus closing costs.
Can expats buy property in Austria?
Yes! EU citizens have the same rights as Austrians. Non-EU citizens may need approval from local authorities (Grundverkehrsbehörde) depending on the property location. Agricultural land has additional restrictions.
What documents do I need for a mortgage application?
Standard documents:
- Payslips (last 3 months)
- Annual tax statements (last 2 years)
- Bank statements (last 3-6 months)
- Proof of equity
- ID/Passport
- Meldezettel (registration)
For expats also:
- Residence permit (non-EU)
- Employment contract
- Possibly: credit report from home country
Mortgage Checklist
✅ Documents for Mortgage Application
- ☐ Payslips: Last 3 months
- ☐ Annual tax statements: Last 2 years
- ☐ Bank statements: Last 3-6 months
- ☐ Proof of equity: Savings, investments, etc.
- ☐ Meldezettel: Current registration
- ☐ ID: Passport or ID card
- ☐ Property documents: Draft purchase contract, land registry excerpt
- ☐ Existing loans: Loan agreements, current balances
Conclusion: Mortgages in Austria 2026
The KIM regulation makes getting a mortgage more demanding, but not impossible. With sufficient equity (at least 20% + closing costs) and a monthly payment under 40% of income, your chances are good.
Our Tips:
- Start building equity early
- Maintain good credit (check KSV)
- Compare multiple offers
- Choose fixed rate for payment security
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Sources: FMA, OeNB, WKO, durchblicker.at. Updated: February 2026.
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Information as of: November 2024. All information without warranty. Changes and errors excepted.
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