# Mortgages in Austria for Expats (2026)

> From 0.9% fixed, state housing loans beat the ~3.3% market rate. Compare all 9 Bundesland schemes, the 90% LTV cap and 10-12% side costs.

Updated: October 12 2026 · By Jules de Bruin · URL: https://www.how-to-austria.com/banking/mortgages

No Austrian bank publishes a rate card, so the market price comes from broker indices: **20-year fixed at 3.941%** (**Infina**, **1 July 2026**) and **variable at 3.40%** on average. The **FMA WIK standards** cap borrowing at **90% of value**, **40% of net income** and **35 years**. Purchase side costs run **10% to 12%** and cannot be financed.

Banks want an **open-ended residence title** for a **25 to 35 year** term, and a **fixed-term permit** is the usual blocker. Self-employed applicants need **2 to 3 completed business years**. Subsidised **Landesdarlehen** demand **Austrian citizenship** or legal equivalence. Allow **7 to 21 days** to a decision and **3 to 8 weeks** to payout.

## What Do Austrian Mortgage Rates Look Like in 2026?

| Index | Fixation | Rate | As of |
| --- | --- | --- | --- |
| Infina Kredit Index | 20 years fixed | **3.941%** | 1 July 2026 |
| Infina Kredit Index | Variable | **3.40% average** | July 2026 |
| Optifin | Best offers | **2.9% to 3.0%** | August 2026 |
| Optifin | Market average | **3.34%** | August 2026 |
| Portal indication | 10 years fixed | **3.0% to 3.4% (unverified)** | September 2026 |

Table of Austrian mortgage rate indices for 2026, showing the Infina Kredit Index at 3.941% for 20-year fixed and 3.40% variable, Optifin at a 3.34% average, and a portal-sourced 10-year fixed band of 3.0% to 3.4%. All figures are broker or portal indices, not bank offers. The 10-year band is unverified. Verify with a bank before you rely on any of them.

Austrian banks publish **no rate card per institution and fixation period**, so there is no posted price to compare. The public numbers come from brokers. The **Infina Kredit Index** put **20-year fixed at 3.941%** on **1 July 2026** and the **variable average at 3.40%** in **July 2026**. **Optifin** reported a **3.34%** market average in **August 2026**, with its best offers at **2.9% to 3.0%**. The **bank margin** inside those rates was **1.088 percentage points**.

Put those rates on a real loan and the scale becomes clear. The reference case used across Austrian calculators is **€300,000 over 30 years**. At **3.3% fixed** that costs roughly **€173,000 in interest** across the full term. A rate difference of a single percentage point on a loan that size moves the total by tens of thousands of euros, which is why the comparison step matters more here than on any other banking product.

Two structures are worth knowing before you talk to a bank. **Hybrid loans** are common and normal, for example **10 years fixed** that then rolls onto a variable rate. **Interest-only loans** paired with a repayment vehicle (**Tilgungsträger**) are permitted but rare. **Foreign-currency loans** to consumers have been effectively **banned since 2008** under the **FMA** minimum standards, so do not expect a Swiss franc mortgage.

## Which Lending Rules Decide Whether You Get the Loan?

Three numbers decide it. Your loan may not exceed **90% of the property value**, your total debt service may not exceed **40% of annual net income** including the **13th and 14th salary**, and the term may not exceed **35 years**. The binding **KIM-VO** expired on **30 June 2025** and the **FMA WIK-Rundschreiben** of **26 June 2025** carries the same thresholds as a **recommendation**. Banks still apply them.

| Parameter | KIM-VO, to 30 June 2025 | WIK-R, from 1 July 2025 |
| --- | --- | --- |
| Loan-to-value (Beleihungsquote) | ≤ 90%, binding | **≤ 90%** |
| Debt-service ratio (DSTI) | ≤ 40% of net income | **≤ 40% of annual net income including the 13th and 14th salary** |
| Maximum term | 35 years | **≤ 35 years** |
| Secured lending covered | Not specified | **Secured loans from €50,000 upward** |
| Bridging finance | Not specified | **Exempt under § 6a Abs. 2 Z 15 VERA-V** |
| Rate fixation | Not specified | **DSTI guide value drops when the fixed period is short (Rz 16)** |
| Exception quota | 20% exception bucket | **80% new-lending-volume rule, a recommendation with no sanction** |

Table comparing the expired Austrian KIM-VO lending regulation with the FMA WIK-Rundschreiben of 26 June 2025, on loan-to-value, debt-service ratio, maximum term, secured-lending threshold, bridging finance and the exception quota. Source: FMA WIK-Rundschreiben of 26 June 2025, as of August 2026.

In practice banks ask for **20% of your own money**, and that **20%** has to cover the purchase side costs as well. **80% loan-to-value** is the comfortable level; **90%** is the ceiling, and full financing remains a case-by-case exception. A short fixed period works against you, because the **WIK-Rundschreiben** lowers the **debt-service guide value** when the rate is fixed only briefly (Rz 16).

For an expat the binding constraint is usually not income, it is paperwork. An **open-ended residence title** is what banks expect behind a **25 to 35 year** commitment, and a **fixed-term permit** is the standard blocker. **Self-employed** applicants need **2 to 3 completed business years** with annual accounts. Age at the end of the term matters too: banks work to internal limits of roughly **65 to 75**, which they do not publish.

### Timing is the part people underestimate

Allow **7 to 21 days** for the credit decision, then **3 to 8 weeks** from the signed offer to payout, then a further **2 to 6 weeks** for the **Grundbuch** entry. The land-register and payout wait is the single most common complaint about Austrian mortgages. Agree the dates in the purchase contract with that timetable in mind.

## Should You Fix Your Mortgage Rate or Stay Variable?

| Feature | 20 years fixed | Variable |
| --- | --- | --- |
| Indicative rate | 3.941% (Infina, 1 July 2026) | 3.40% average (July 2026) |
| Early repayment | Up to 1% above €10,000 a year; 3% for new contracts from 1 January 2027 | €0 by statute |
| Rate risk | None during the fixed period | Every Euribor move reaches your instalment |
| Wins when | You plan to hold 20 to 30 years, sit close to the 40% limit, or want certainty | You expect a lump sum, plan to sell or refinance, or have a short remaining term |

Rates are broker indices, not bank offers, and carry an unverified flag. Early repayment rules from § 20 HIKrG.

The spread between the two is small in 2026, which changes the usual advice. The **Infina Kredit Index** put **20-year fixed at 3.941%** against a **variable average of 3.40%**, a gap of about **0.54 percentage points**. On **€300,000 over 30 years** that gap costs about **€92 a month** as insurance against rising rates. Variable is not automatically cheaper: it is cheaper only for as long as Euribor stays where it is.

The thing borrowers most often get wrong is the exit. A **variable** mortgage costs **€0** to repay early by statute. A **fixed** one allows **€10,000** a year free, then up to **1%**, and new fixed contracts signed from **1 January 2027** may charge up to **3%** under **§ 20 Abs. 3 HIKrG**. If an inheritance, a bonus or a sale is likely inside the fixed period, that clause is worth more than the rate difference.

Our stress test: €300,000 over 30 years, standard monthly annuity, against a household net income of €55,000 a year including the 13th and 14th salary. The debt-service ratio is twelve instalments divided by that income, measured against the FMA guide value of 40%. The fixed row also shows the balance left when 20 years of fixing end. Rates from the indices above, as of October 2026.

| Scenario | Monthly | Debt service | Note |
| --- | --- | --- | --- |
| Variable at 3.40% | **€1,330.44** | 29.0% | Today's average |
| Variable, rates +1 point (4.40%) | **€1,502.28** | 32.8% | €171.84 more a month |
| Variable, rates +2 points (5.40%) | **€1,684.59** | 36.8% | €354.15 more, still under 40% |
| 20 years fixed at 3.941% | **€1,422.06** | 31.0% | €140,846.91 still owed after 20 years |

Read the stress test from the bottom row up. Fixing for 20 years buys a steady **€1,422.06**, but almost **€141,000** is still outstanding when the fixing ends, and that balance is refinanced at whatever rate the market offers then: about **€1,386** a month at today’s **3.40%**, or about **€1,522** at **5.40%**. On the variable side a two-point rise adds **€354.15** a month and lifts the debt-service ratio from **29.0%** to **36.8%**. For this household both survive the shock; a buyer who starts at **35%** does not.

Short fixings are the third option and the most misread one. A **5 or 6 year** fixed rate often looks cheapest, but on a 35-year loan roughly **90%** of the principal is still owed when it ends, so most of the rate risk has only been postponed. The **FMA WIK-Rundschreiben** knows this too and lowers the debt-service guide value for short fixings (Rz 16).

### What residents report

- ○ **Short fixed period**: A borrower took a building-society offer of €410,000 at 2.99% fixed for only 6 years to hit a monthly instalment near €1,660. A mortgage adviser in the thread warned that roughly 90% of the principal is still outstanding, and variable, when the fixed period ends. ([energiesparhaus.at forum](https://www.energiesparhaus.at/forum/81485_30), November 2025)
- ○ **Fixed below variable**: A mortgage adviser posting in July 2026 observed that 5-year and 10-year fixed rates were at times cheaper than variable ones, while a 25-year fixed rate sat at about 3.75%. Another poster suggested splitting the loan to spread the risk. ([energiesparhaus.at forum](https://www.energiesparhaus.at/forum/81485_37), July 2026)

Paraphrased from public posts, each dated and linked. A small sample, not a representative survey.

## Which Subsidised State Loans Can You Get in Austria?

| Bundesland | Terms | Income limits, net per year, household | Notes |
| --- | --- | --- | --- |
| Vienna | **1% fixed over 30 years, plus an own-funds replacement loan at 1%** | €45,990 (1 person) / €68,530 / €77,550 / €86,570, plus €4,070 per further person | The housing-subsidy contribution rose from 1% to 1.5% on 1 January 2026 |
| Lower Austria (Niederösterreich) | **1% guaranteed, 27.5 or 34.5 years, allocated on a points system** | €60,000 / €90,000, plus €10,000 per child. An older source gives €40,000 / €65,000, so confirm the current figure | Base subsidy roughly €60,000 to €100,000, young families get €10,000 more |
| Upper Austria (Oberösterreich) | **Subsidised mortgage, variable or fixed on a swap basis, plus a grant** | €50,000 / €85,000, plus €7,500 per further person | You choose variable or fixed against the 12-year or 15-year swap |
| Styria (Steiermark) | **Restarted on 1 March 2026: up to €80,000 at 1.5% or less over 30 years** | Wohnbauscheck: €56,300 / €84,450, plus €6,570 per further person | Applications opened 1 March 2026 |
| Salzburg | **One-off grant of up to roughly €30,000 plus an annuity subsidy of up to €500 per month** | €57,000 up to €127,000 depending on household size | A grant model rather than a subsidised loan |
| Carinthia (Kärnten) | **0.5% in years 1 to 20, then 1.5% in years 21 to 30, plus a grant** | €53,000 / €82,000, plus €8,000 per further person | The rate steps up part-way through the term |
| Tyrol (Tirol) | **Subsidised loan from 0.2% interest plus 0.3% amortisation, or a Wohnbauscheck of €18,900** | One twelfth of net income: €3,800 / €6,300 / €6,780, plus €480 | Two models, you pick one |
| Vorarlberg | **Loans only since 1 July 2025, maximum 35 years: 3.30% fixed (4.85% annuity) or a 1.0% to 5.0% step scale** | One twelfth of net income: €4,000 / €7,000 / €8,250 | The system changed on 1 July 2025 |
| Burgenland | **0.9% fixed over 30 years, covering up to 70% of build costs** | Income tiers pay out at 100%, 60% or 30% of the subsidy | Main residence for at least 2 years, 150 m² maximum, social supplement up to €15,000, apply within 24 months of building clearance |
| Federal scheme (Bund) | **Own-funds replacement loan up to €200,000, maximum 1.5% fixed, at least 25 years** | Set by the programme conditions | Runs 2024 to 2026 with a volume of €500 million |

Table of subsidised housing loans (Wohnbauförderung) in all nine Austrian Bundesländer plus the federal own-funds replacement loan, showing Burgenland at 0.9% fixed over 30 years, Vienna at 1% fixed over 30 years, Carinthia at 0.5% then 1.5%, Tyrol from 0.2%, Styria at 1.5% from 1 March 2026, and the federal scheme up to €200,000 at 1.5%, with the household net income limits for each. Source: the Länder housing-subsidy pages and the Infina overview, as of August 2026. Limits are revalued annually, so confirm the current figure with your Land before applying.

Subsidised **Landesdarlehen** are the cheapest housing money in Austria, and by a wide margin. **Burgenland** lends at **0.9% fixed over 30 years** for up to **70% of build costs**, the lowest documented fixed rate in the country over a full 30-year term. **Vienna** charges **1% fixed over 30 years**. Against a market rate near **3.3%**, borrowing **€100,000 over 30 years** at **1%** saves roughly **€35,000 in interest**.

There is a second, quieter benefit. A **Landesdarlehen** is a **subordinated loan**, so banks count it toward your **own funds**. That is often what gets an applicant over the **20% equity** bar the **WIK standards** effectively set. The big retail networks know this: **Sparkassen** and **[Raiffeisen](https://www.raiffeisen.at)** routinely arrange the state loan and the bank loan together as one package, which is the single best thing about the Austrian system.

Four conditions are common to almost every scheme. **Austrian citizenship or formal legal equivalence** is required. The property must become your **main residence**. The application must be filed **strictly before construction starts**, and a late application cannot be repaired. **Fossil-fuel heating** disqualifies the project under the **2026** guidelines. Expect **months** of processing time at the Land office before you get an approval.

### The one scheme open to third-country nationals

**Vienna**’s **Eigenmittelersatzdarlehen**, run by **MA 50**, replaces missing own funds for up to **30% of construction costs** on a subsidised flat. It is open to **Austrian and EU citizens** and to **third-country nationals holding a valid residence permit**. The building must be **25 years old or less** and **150 m² or smaller**, and total household net income must sit below the **funding level 4** limits: **€47,510** for one person, **€70,790** for two, **€80,100** for three, **€89,440** for four, plus **€4,210** per further person in **2026**. Apply **within 3 months** of the rental or purchase contract. Vienna’s subsidised loans run at about **0.5% per year** for up to **30 years**.

Two more traps are worth naming. The subsidy is **tied to the purpose and the address**, so moving away can trigger **repayment**. And **Salzburg** does not lend at all: it pays a **one-off grant of up to about €30,000** plus an **annuity subsidy of up to €500 per month**, and expects **10% own funds** alongside **20% borrowed funds**. Read your Land’s own guideline before you sign anything with a developer.

## What Are the Purchase Side Costs on Top of the Price?

| Cost | Rate | €250,000 price | €450,000 price | €800,000 price |
| --- | --- | --- | --- | --- |
| Land transfer tax (Grunderwerbsteuer) | 3.5% | €8,750 | €15,750 | €28,000 |
| Land register, ownership (Eintragungsgebühr) | 1.1% | €2,750 | €4,950 | €8,800 |
| Lien registration, if you borrow (Pfandrecht) | 1.2% of the registered value | €2,880 | €5,040 | €7,200 |
| Notary or lawyer, notarised contract | 1% to 3%, about 2% | €5,000 | €9,000 | €16,000 |
| Buyer's agent commission | 3% plus 20% VAT | €9,000 | €16,200 | €28,800 |
| Filing fees (Eingabegebühren) | €85 per application | about €170 | about €170 | about €170 |
| Total | **about 10% to 12%** | **about €28,550 (11.4%)** | **about €51,110 (11.4%)** | **about €88,970 (11.1%)** |

Table of Austrian property purchase side costs (Kaufnebenkosten) at three price points in 2026, covering Grunderwerbsteuer at 3.5%, land register at 1.1%, lien registration at 1.2%, notary at about 2%, buyer’s agent at 3% plus 20% VAT and €85 filing fees, totalling about €28,550 on €250,000, €51,110 on €450,000 and €88,970 on €800,000. The loan assumed is €200,000, €350,000 and €500,000 respectively. Source: oesterreich.gv.at plus computation, as of August 2026.

Side costs land at **10% to 12% of the purchase price** and they are **not financeable**, so they come out of the same savings as your deposit. On a **€450,000** flat that is about **€51,110** before you have paid a cent toward the property. The biggest single line is usually the **buyer’s agent commission** at **3% plus 20% VAT**, which is why a private sale changes the maths: a **€250,000** purchase with no agent drops to about **€19,550**, or **7.8%**.

The **lien registration** line trips people up because it is not charged on the loan. It is **1.2%** of the **registered value**, and a mortgage is normally registered at **100% of the loan plus 20%** of ancillary-charge cover. A **€350,000** loan is registered at **€420,000**, so the fee is **€5,040**, not **€4,200**.

### The fee exemption has expired

Until **30 June 2026** the **Grundbuch** entry and the **Pfandrecht** registration were exempt from fees up to **€500,000**. Only applications filed **before 1 July 2026** still qualify. Since then the **1.1%** ownership fee and the **1.2%** lien fee are charged in full again, which adds roughly **€10,000** to a **€450,000** purchase compared with the exempt period.

## How Does a Bauspardarlehen Work Alongside a Bank Loan?

A **Bauspardarlehen** is a building-society loan with a **statutory interest ceiling of 6%** under the **Bausparkassengesetz**. That cap is the whole point: whatever happens to market rates, the payment on this slice of your finance cannot run away. It is normally used as a **second block** alongside a bank mortgage rather than as the whole loan.

Published tariffs are scarce here too, but **[Raiffeisen](https://www.raiffeisen.at) Landesbank Niederösterreich-Wien** lists its **1 January 2026** terms: a saving rate of **0.5% to 4.9%**, a mixed rate of **0.9% to 4.4%**, and an account fee of **€8.55 per year**. Treat that as the shape of the market rather than a quote, and ask your own **Bausparkasse** for the current tariff in writing.

The trade is straightforward. You buy **predictability** with the **6% ceiling** and you pay for it when the market sits below the capped rate. It earns its place when you are already stretched against the **40% debt-service** limit and need one part of the repayment to be immune to a rate spike. Combining it with a bank mortgage is standard, and so is combining both with a **Landesdarlehen**.

## When Is Refinancing an Austrian Mortgage Worth It?

| Cost item | Amount | Basis |
| --- | --- | --- |
| Early-repayment penalty at the old bank | **Maximum 1% of the amount repaid early, above the free €10,000 per 12 months, and €0 on a variable rate** | § 20 HIKrG. New contracts from 1 January 2027 face a 3% cap |
| Deletion receipt (Löschungsquittung) | **Required. The fee is unverified, typically €0 to €150** | Land register |
| New lien registration | **1.2% of the mortgage sum including the ancillary-charge cover, so 100% plus 20% of the loan** | Land register. The exemption up to €500,000 expired on 30 June 2026 |
| New bank's arrangement fee | **Institution-dependent, not published** | Your individual offer |

Table of the full cost of switching an Austrian mortgage (Umschuldung) in 2026: the § 20 HIKrG penalty capped at 1%, the Löschungsquittung from the old bank, the 1.2% new lien registration and the new bank’s arrangement fee. Source: HIKrG and land-register tariffs, as of August 2026.

Switching pays only when the rate gap is large and the remaining term is long. The costs are a penalty of at most **1%** under **§ 20 HIKrG**, the **Löschungsquittung** from your old bank, and a fresh **1.2% lien registration**. If your current loan is **variable**, the penalty is **€0** by statute, so only the land-register costs stand between you and a better rate.

### The break-even calculation

- **Monthly saving** = outstanding balance × (old rate − new rate) ÷ 12
- **Switching cost** = penalty (max **1%**) + Löschungsquittung + **1.2%** × the new mortgage sum
- **Break-even in months** = switching cost ÷ monthly saving

Worked example: **€250,000** outstanding moving from **4.1%** to **3.3%**, with a **€300,000** mortgage registered. The saving is **€166.67 per month**. The costs are about **€2,500** in penalty plus roughly **€3,600** in lien registration, so **€6,100** in total. Break-even lands at about **37 months**.

The practical rule that falls out of those numbers: a switch is safely in the black from about **0.8 percentage points** of rate advantage with at least **5 years** of term remaining. Switching **less than 3 years** before the end almost never pays, because the **1.2%** lien fee eats the entire interest gain.

Two mechanics decide how smooth the switch is. The **Löschungsquittung** is your lever and your risk: without it the **Grundbuch** entry cannot be cleared, and there is **no statutory deadline** for the old bank to issue it, so weeks can pass with the new bank unable to pay out. Chase it in writing from the day you sign the new offer. **Bridging finance** is the other tool: it is **exempt from the WIK standards** under **§ 6a Abs. 2 Z 15 VERA-V**, short-term and more expensive, and it covers the gap until a subsidy is approved or an old property sells. A **top-up** is possible too, at the cost of a new **1.2%** lien registration.

## How Do You Compare Mortgage Offers in Austria?

Because no bank posts its mortgage conditions, the broker is the only working price-discovery mechanism in the Austrian market. **Infina** is **free for the borrower** and reaches **more than 150 institutions** through the **PROFIN** platform. **Optifin** covers **more than 60 banks**. Both are paid by the lender through a success-based commission, and the amount per institution is not published.

Read their published indices for what they are. The **Infina Kredit Index** and the **Optifin** averages are **portal-sourced** and carry an **unverified** flag in our research, because no primary bank document backs them. They are the best public signal available, not a quote. The number that binds is the one in your **ESIS-Merkblatt**, the standard information sheet the lender must give you before you sign under the **HIKrG**.

Run the arithmetic yourself as well. The [AK Bankenrechner](https://www.bankenrechner.at/) from the **Arbeiterkammer** is advertising-free and lets you compare loan offers side by side. If a lender and you end up in dispute, the [Gemeinsame Schlichtungsstelle der Österreichischen Kreditwirtschaft (GSK)](https://www.bankenschlichtung.at/) is free and covers effectively every Austrian bank. It handled **385 credit-contract cases in 2025**, and **55%** of completed procedures ended in an agreement.

Real offers posted by borrowers show why the effective rate and the fees decide, not the headline. Within one week in **November 2025**, offers for 10-year fixed rates ran from **2.99%** with a **€1,000** processing fee to **3.49%** with a **€2,158** fee, and two lenders valued the same property more than **€70,000** apart. Ask every bank for the **ESIS-Merkblatt** and compare the effective rate, the fees, the free special-repayment amount and the margin over **Euribor** after the fixed period.

### What residents report

- + **10-year fixed offer**: A buyer of a semi-detached house was offered €375,000 over about 34 years at 2.99% fixed for 10 years, 3.15% effective, with a €1,000 processing fee and €30,000 a year of free special repayment. A reply called the margin after the fixed period high. ([energiesparhaus.at forum](https://www.energiesparhaus.at/forum/81485_30), November 2025)
- ○ **Property valuation gap**: The same borrower reported that the building society valued the property above €500,000 while the house bank put it at €430,000, a gap that changes how much of the purchase counts as covered by the property. ([energiesparhaus.at forum](https://www.energiesparhaus.at/forum/81485_30), November 2025)
- − **Processing fee**: A house-bank offer on €100,000 over 20 years came at 3.49% fixed for 10 years, or 3.25% variable with a 1.99% to 4.25% rate band, but carried a €2,158 processing fee. The borrower planned to collect more offers before signing. ([energiesparhaus.at forum](https://www.energiesparhaus.at/forum/81485_30), November 2025)

Paraphrased from public posts, each dated and linked. A small sample, not a representative survey.

## What Rights Do You Have on an Austrian Mortgage?

Four protections apply to every residential mortgage. You get the **ESIS-Merkblatt** before you sign. You may **withdraw within 14 days**. You may repay **€10,000 every 12 months** with no penalty, and any larger early repayment is capped. Valuation costs cannot be passed to you. The block below carries the statute, the regulator, the free tool and the current figure.

| The rules behind this page | HIKrG § 20 |
| --- | --- |
| Law | [Hypothekar- und Immobilienkreditgesetz (HIKrG), § 20: early repayment and the penalty cap](https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=20009367) |
| Regulator | [FMA, residential mortgage section including the WIK lending standards](https://www.fma.gv.at/kredit/wohnimmobilienkredit/) |
| Free tool | [AK Bankenrechner, home-loan module](https://www.bankenrechner.at/) |
| Your right | Early repayment costs at most 1% of the amount repaid, or 0.5% where less than a year remains, and you may repay €10,000 every 12 months with no penalty at all (§ 20 HIKrG). For new fixed-rate contracts signed from 1 January 2027 the cap rises to 3% (§ 20 Abs. 3 HIKrG). |
| Applies since | HIKrG in force 21 March 2016; the 3% rule applies to new contracts from 1 January 2027 |

One change is already scheduled and worth planning around. The early-repayment cap rises to **3%** for **new fixed-rate** residential contracts signed from **1 January 2027**. Contracts on a **variable rate** stay at **€0**, and the separate consumer-credit rule in **§ 16 VKrG** is unaffected: it stays at **1%**, or **0.5%** where less than a year remains. If you expect to repay a chunk early, that timing matters.

If something goes wrong, the route is fixed. Start with the bank’s own complaints desk in writing, where the industry takes roughly **4 to 6 weeks**. Escalate to the free **GSK** arbitration body next. Take supervisory breaches, for example a loan granted without the credit assessment the law requires, to the [FMA](https://www.fma.gv.at/kredit/wohnimmobilienkredit/), which supervises the market but awards no individual compensation. The **Arbeiterkammer** and the civil courts remain open after that.

## German Mortgage Terms Glossary

- Hypothekarkredit: Mortgage, a loan secured against property

- Eigenmittel: Your own funds: the deposit plus the side costs

- Beleihungsquote: Loan-to-value ratio, capped at 90% by the FMA

- Pfandrecht: The lien the bank registers against your property

- Grundbuch: The Austrian land register

- Löschungsquittung: Deletion receipt, needed to clear an old lien

- Wohnbauförderung: Subsidised state housing finance, run per Bundesland

- Bauspardarlehen: Building-society loan with a 6% statutory rate ceiling

- ESIS-Merkblatt: The standard pre-contract information sheet

- Annuität: The annual repayment made of interest plus principal

Sources: FMA WIK-Rundschreiben of 26 June 2025; HIKrG and VKrG via RIS; the nine Länder housing-subsidy pages plus the Infina overview; oesterreich.gv.at on Grunderwerbsteuer and land-register fees; [Raiffeisen](https://www.raiffeisen.at) Landesbank Niederösterreich-Wien Bauspar tariff of 1 January 2026; GSK annual report 2025. Rate indices from Infina and Optifin are portal-sourced and unverified. Figures as of August 2026, refreshed September 2026; stress test and statutes checked 12 October 2026. Borrower reports from the energiesparhaus.at financing forum, 2025 and 2026. This is general information, not credit, legal or tax advice.

## Related Guides

[Buying Property: The purchase process, agents, and what the side costs buy you.](/living/real-estate)

[Housing: Renting, deposits, and the Austrian housing market by city.](/living/housing)

[Open a Bank Account: The AT-IBAN and the KSV1870 check every lender will look at.](/banking/open-bank-account)

[Savings Accounts: Where to park the deposit while you are still house-hunting.](/banking/savings-accounts)

[Cost of Living: What the rest of the monthly budget looks like around the repayment.](/living/cost-of-living)

[Austrian Banks: Who lends in Austria, and which networks bundle the state subsidy.](/banking/commercial-banks)

[Austria’s Consumer Credit Act 2026 (VKrG 2026): From 20 November 2026, BNPL through Klarna becomes regulated credit with mandatory checks.](/banking/consumer-credit-law-2026)

Free download

Austrian Expat Banking Checklist

Bank account · Credit card · Health insurance · Tax registration

No spam. Unsubscribe anytime.

## Frequently Asked Questions

### Can a foreigner get a mortgage in Austria?

Yes, but the **residence title** decides it. Austrian banks want an **open-ended residence title** for a **25 to 35 year** term, and a **fixed-term permit** is the usual blocker. **Self-employed** applicants need **2 to 3 completed business years** with annual accounts. **Foreign-currency income** is effectively not accepted, while **EUR income** from elsewhere in the **EU** is taken case by case.

### How much deposit do you need for an Austrian mortgage?

In practice **20%** of your own money, and the purchase side costs come on top. The **FMA** **WIK standards** cap the loan at **90% of the property value**, so **10%** is the theoretical floor, but banks treat **80%** as the comfortable level. Side costs of **10% to 12%** are **not financeable** and must come from savings.

### What are mortgage rates in Austria in 2026?

No Austrian bank publishes a rate card per fixation period, so the only public prices are **broker indices**. The **Infina Kredit Index** put **20-year fixed at 3.941%** on **1 July 2026** and variable rates at **3.40%** on average in **July 2026**. **Optifin** reported a **3.34%** market average in **August 2026** with best offers at **2.9% to 3.0%**. Treat all of these as indicative.

### Can you repay an Austrian mortgage early?

Yes. Under **§ 20 HIKrG** you may repay **€10,000 every 12 months** with **no penalty** at all. Above that the compensation is capped at **1%** of the amount repaid, or **0.5%** where less than a year remains, and a **variable-rate** loan costs **nothing** to repay early. For **new fixed-rate** residential contracts signed from **1 January 2027** the cap rises to **3%** under **§ 20 Abs. 3 HIKrG**.

### How long does an Austrian mortgage take from application to payout?

Expect **7 to 21 days** for the credit decision. Payout runs **3 to 8 weeks** from the signed offer, and the **land register entry** adds a further **2 to 6 weeks** on top. The land register and payout wait is the **most common complaint** about Austrian mortgages, so build it into your purchase timetable.

### Do expats qualify for subsidised state housing loans in Austria?

Usually not. Every **Bundesland** scheme requires **Austrian citizenship** or formal **legal equivalence**, so **third-country nationals** without equivalence are **excluded**. **Vienna**’s **own-funds replacement loan** is the exception: it accepts third-country nationals holding a **valid residence permit**, and you must apply **within 3 months** of signing the contract.

### Is mortgage interest tax-deductible in Austria?

Not for a home you live in. Private housing-loan interest is **not deductible** from income tax, and the old **Sonderausgaben** route for housing costs only covered contracts signed before **2016** and has expired. What Austria offers instead is **subsidy**: state housing loans from **0.9% fixed** and the federal own-funds replacement loan. Interest is deductible only where the property earns income, for example a **flat you rent out**, against that rental income.

### What happens to an Austrian mortgage if you move abroad?

The mortgage itself stays in place, and the bank can only change terms the contract allows. Two things do change. A subsidised **Landesdarlehen** is tied to your **main residence**, so moving out can trigger **repayment of the subsidy**. And refinancing later becomes hard, because Austrian banks effectively do not lend against **foreign-currency income**. Tell the subsidy office before you move and keep an **Austrian account** for the instalments.

### What can you do if the old bank delays the Löschungsquittung?

Ask for it **in writing with a firm deadline**, because there is **no statutory deadline** for issuing it and without it the old lien cannot be cleared from the **Grundbuch**. If the bank still stalls, file a written complaint with its complaints office, then take the case to the free **Gemeinsame Schlichtungsstelle der Österreichischen Kreditwirtschaft**, which reached an agreement in **55%** of its completed procedures in **2025**.

### Who is liable on a joint mortgage in Austria?

Each borrower is liable for the **whole loan**, not for half of it. That is why **two incomes** lift the amount a couple can borrow under the **40% debt-service** guide value. It also means a **separation** does not end anyone’s liability: until the bank formally releases one borrower, usually after refinancing in one name with a fresh income check, both remain on the hook.

---

Source: https://www.how-to-austria.com/banking/mortgages
Last updated: Updated: October 12 2026
Format: LLM-readable Markdown twin (.md) of the canonical HTML page.