Mortgage Austria 2026: After KIM-V, Rates and Fee Waiver Guide

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Anyone financing property in Austria in 2026 is dealing with two converging shifts: the binding KIM-V regulation has expired and been replaced by a softer FMA Circular, while a temporary government fee waiver shaves several thousand euros off closing costs. This guide focuses on what those changes mean in practice during the transition phase.

For the complete picture of how Austrian mortgages work end-to-end, including expat eligibility, see our complete mortgage guide for Austria. For the application process and document checklist, see our mortgage application guide.

KIM-V vs. WIK Circular: What's the difference?

The KIM-V (Kreditinstitute-Immobilienfinanzierungsmasnahmen-Verordnung) was a binding regulation issued by the Austrian Financial Market Authority (FMA). It ran from August 1, 2022 to June 30, 2025 and set three hard limits for residential mortgage lending:

• Maximum loan-to-value ratio of 90% (at least 10% equity, with 20% recommended including closing costs)
• Maximum debt service ratio of 40% of net household income
• Maximum 35-year term

It also allowed banks a 20% quarterly exception quota, within which they could deviate from these limits.

The FMA decided not to renew the regulation, citing reduced systemic risk in the housing loan market and improved risk discipline among banks. On June 26, 2025 the FMA published the WIK Circular ("Wohnimmobilienkredit-Rundschreiben") which keeps the same thresholds as non-binding recommendations.

Source: FMA: Sound Loan Origination after KIM-V Expiry.

What banks actually do now

The theory and the practice diverge here. On paper, banks have been free since July 2025 to decide each case individually. In reality, most still follow the 20/40/35 logic, because it functions as an internal risk benchmark and because the FMA continues to question deviations during supervisory dialogue.

What has shifted in practice:

• Borderline cases get through more often. Applicants with 15-18% equity who would have been rejected before now have a real chance, provided income and credit history are strong.
• First-time buyer programs. Several Austrian banks have launched dedicated programs for young families and first-time buyers with reduced equity requirements.
• Longer terms occasionally available. Some banks now offer 40-year terms if that keeps the monthly payment within the DTI guideline.
• Guarantor structures more common. Parent guarantees (Bürgschaft) are used more often to compensate for thin equity.

What has not changed: without a clean KSV1870 credit record, stable income, and documented equity, applications still go nowhere. The softening affects edge cases, not the fundamentals.

The fee waiver: who saves how much

As part of an Austrian housing stimulus package, two fees are temporarily waived. The legal basis is a temporary amendment to the Land Registry Fees Act (Grundbuchsgebührengesetz). Source: Austrian Legal Information System (RIS).

Waived fees:

• Land registry fee (Grundbucheintragungsgebühr): normally 1.1% of purchase price
• Mortgage registration fee (Pfandrechtseintragungsgebühr): normally 1.2% of loan amount

Conditions:

• Property must be used as primary residence (Hauptwohnsitz, not second home or rental)
• Purchase price up to €500,000 per buyer (allowance, partial relief above)
• Registration application filed with the land registry court by June 30, 2026

Important: The trigger date is the application to the land registry court, not the signing of the purchase contract. If you sign in April 2026, your notary must still file the registry application before June 30, 2026. Most notaries plan for this, but at the deadline things can get tight.

Current mortgage rates (March 2026)

The ECB held the main refinancing rate at 2.15% (meeting of March 19, 2026). Source: ECB Monetary Policy Statement March 2026. The 3-month Euribor sits at about 2.15%, which is what variable Austrian mortgages are typically pegged to.

The OeNB Monetary Interest Rates (MIR) statistic reports an average rate of 3.38% for new housing loans to households in December 2025. The range across banks and borrower profiles is wide. Source: OeNB Housing Loan Statistics.

Sources: OeNB MIR statistics December 2025 (average 3.38%), ECB main refinancing rate 2.15% as of March 19, 2026. Individual rates depend on credit profile and loan-to-value ratio.

The Austrian yield curve is unusually flat in 2026. The premium between variable and 10-year fixed is only 0.3 to 0.5 percentage points, compared to 0.8 to 1.5 percentage points in typical market conditions. Borrowers who want certainty are paying very little for it right now.

For the full breakdown of rate models, combination mortgages, calculation examples and expat-specific scenarios, see our complete mortgage guide.

Three windows closing in 2026

Three deadlines matter for anyone planning financing in 2026:

June 30, 2026: fee waiver expires. The registry application must be filed by then. If you start looking in early 2026, you have time. If you reach the notary stage in May 2026, the clock is tight.

ECB meetings in 2026: Remaining meeting dates are June 4, July 30, September 11, October 30 and December 18, 2026 (source: ECB calendar). Market consensus expects one or two small rate cuts in the second half, but nothing is guaranteed.

FMA annual review: The FMA reviews each year whether the WIK Circular remains adequate as a non-binding recommendation, or whether a binding regulation needs to come back. The first review is scheduled for late 2026.

Practical 2026 checklist

If you want to buy concretely, this order works:

1. Pull your KSV1870 record. Free once per year via meineSelbstauskunft.at. Negative entries derail every application.
2. Document your equity. Savings accounts, building savings, gifts must all be traceable. Banks want a complete paper trail.
3. Request rate quotes (Konditionsanfragen) from 3 to 5 banks. These do not count as hard inquiries and do not damage your KSV score.
4. Book a notary early. Demand is higher than usual in 2026 because of the waiver deadline, and notaries can be booked weeks ahead.
5. Run fixed vs. variable side by side. The flat curve makes fixed unusually attractive if you plan to stay in the property long-term.
6. Check provincial Wohnbauförderung. Each of the 9 federal provinces has its own housing subsidy program. Overview in the complete mortgage guide.

What's different for expats

EU/EEA citizens with Austrian residency and employment are treated essentially as Austrian nationals. Documentation requirements are the same, KSV1870 records still apply, and the same rates are available. Two practical points:

• Residence permit history matters. Banks prefer borrowers with at least 2-3 years of Austrian residence and stable employment.
• Non-EU citizens typically need 30-40% equity instead of the standard 20%. Some federal provinces also require municipal approval (Grundverkehrskommission) for non-EU buyers.

The post-KIM-V loosening does not target expats specifically, but the additional case-by-case flexibility helps applicants with non-standard profiles get over the line.

For expat-specific guidance on residence permits, taxation and documentation, see the expat section of our complete mortgage guide.

Compare mortgage offers in Austria

The rate difference between Austrian banks in 2026 is typically 0.3 to 0.5 percentage points. On €280,000 over 25 years, that translates to roughly €15,000 to €22,000 in total interest. Getting 3 to 5 quotes pays off in real euros.

Frequently asked questions

Is the KIM regulation still in effect in 2026?

No. The KIM-V regulation expired on June 30, 2025 and was not renewed. Since July 1, 2025, the FMA WIK Circular (published June 26, 2025) applies instead. The same thresholds (20% equity, 40% DTI, 35-year term) continue as non-binding recommendations. Banks still follow them in practice.

Can I get a mortgage without 20% equity since KIM-V expired?

In individual cases, yes. The WIK Circular gives banks more flexibility, particularly for young families, applicants with above-average income, or applicants providing additional security (e.g. parent guarantee). Equity contributions of 10-15% instead of 20% are now possible, typically with a rate premium of 0.2-0.5 percentage points to reflect the higher LTV.

What are the conditions for the fee waiver until June 30, 2026?

Three conditions: first, the property must serve as a primary residence (not a second home or rental). Second, the purchase price must be up to €500,000 per buyer (allowance, partial relief above). Third, the application for land registry entry must be filed with the registry court no later than June 30, 2026. Legal basis: temporary amendment to the Land Registry Fees Act.

What are current Austrian mortgage rates?

As of March 2026: variable rates from about 3.10% effective, fixed 10-year rates from about 3.40% effective. The OeNB average for new housing loans in December 2025 was 3.38% effective. Individual rates depend on credit profile, equity contribution, term and negotiation.

Does fixed or variable make more sense in 2026?

The Austrian yield curve is unusually flat in 2026. Fixed 10-year is only 0.3 to 0.5 percentage points above variable, versus 0.8 to 1.5 percentage points in typical markets. If you need certainty and plan to stay longer than 5-7 years, fixed is relatively cheap. If you may sell or refinance sooner, variable can still come out ahead.

What happens when the fee waiver expires on June 30, 2026?

From July 1, 2026, the 1.1% land registry fee and 1.2% mortgage registration fee return to normal, unless the legislator extends the waiver. On a €350,000 purchase with a €280,000 loan, that adds about €7,200 to closing costs. No extension is currently legislated. Filing the registry application early is worth the effort.

How long does mortgage approval take in 2026?

From initial inquiry to disbursement, typically 4 to 8 weeks. The timeline depends on document completeness, the property appraisal, and the bank's internal credit review. Because of the fee waiver deadline, notary and land registry court schedules in 2026 may be slightly longer than usual.

Where can I find the legal sources for the WIK Circular?

The FMA publishes the Circular at fma.gv.at/banken/wohnimmobilienkredite (German) and an English summary at fma.gv.at/en. The KIM-V expiry is documented in the Austrian Legal Information System (RIS). Consumer guidance is available from the Arbeiterkammer.

Key points

The expiry of the KIM-V regulation in mid-2025 combined with the temporary fee waiver creates a relatively favorable financing window in Austria in 2026. Three things to take away:

1. The 20/40/35 logic still applies in practice, even though it is now only a recommendation. Banks still expect solid equity, stable income and a clean credit record.
2. The fee waiver saves real money (€5,000 to €11,500) if the registry application is filed before June 30, 2026. Book a notary early.
3. The flat yield curve makes fixed rates unusually attractive. Long-term borrowers pay only a small premium for payment certainty.

Dig deeper:

• Complete Austrian mortgage guide: rates, rules, expats
• Mortgage application: step-by-step checklist
• Loan interest rates in Austria 2026
• Loan calculator Austria
• Building savings guide Austria

Sources and legal references

• FMA: Sound Loan Origination after KIM-V Expiry (WIK Circular, June 26, 2025)
• OeNB Housing Loan Statistics (MIR)
• ECB Monetary Policy Statement March 2026
• Austrian Legal Information System (RIS)
• Arbeiterkammer Housing and Finance
• KSV1870 Credit Bureau

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Last updated: May 27, 2026. Based on OeNB MIR statistics (December 2025), ECB data (March 2026) and FMA publications. Individual rates and conditions vary by credit profile and loan-to-value ratio. This guide does not constitute financial or legal advice and is no substitute for individual advice from a bank, notary or attorney.