Can you get a Mortgage that Includes Renovation CostsCould you get a mortgage that includes renovation costs?
Immobilien-Hypothek - Austria Mortgage Guide
The Austrian real estate markets are becoming more and more appealing, as interest levels are currently at historically low levels. In Austria, mortgage financing is easily possible, with up to 60% of the value of the property usually lent by Austrian commercial real estate institutions. You can also renew a mortgage to pay for the renovation, also known as a building savings mortgage; the savings house will loan you the amount needed to buy and refurbish the house.
In Austria, 5-10 year duration interest rate fixes are becoming increasingly frequent, while floating interest rate equivalent to Euribor interest rate are also readily available. Even though the mortgage request procedure is relatively easy and you can get an almost instant quote, it may take several months for the mortgage to be approved.
The mortgage provider usually carries out a real estate appraisal, which is free of fee or part of the costs of obtaining a mortgage. However, some financiers provide a interest rate cut for the first year or only interest payments for one year, known as teaser installments and although it can be useful for you to get up in your first year, after the first cycle the financier default interest will apply and this could be significantly higher.
With the purchase of a real estate in Austria the costs of transactions are relatively low and usually not contained in the mortgage, so that the creditors calculate approximately 2% of the value of the credit as charges. A 2% registration tax is also charged for the mortgage certificate, which may or may not be contained in the original valuation.
Included in the amount of taxation is real estate income between 0.4% and 0.9% of the value of the real estate, and recently investment income taxation has been lowered to 25%. Currently, for your real estate mortgage in Austria, interest rate options are available from 1.9% (July 2015) and a maturity of 20 years is typically available. Creditors need the following documents:
For further information please do not hesitate to get in touch with our Austrian mortgage consultants.