Minimum down Payment for 2nd home

Anticipate a substantial down payment when brokering a home loan in Austria. Credits for over 80% of the real estate value are scarce. A 2% charge is also levied for the registration of the mortgages in the domestic register. There is no legal minimum requirement for a minimum payment, but creditors usually need 30% or more.

Usually the amount needed as a down payment is higher if you are located in the EU (but not in Austria) and even higher if you are an overseas purchaser from non-EU countries. According to source, a 30% down payment is usually requested from EU purchasers, while a 40% down payment can be requested from multinational purchasers.

In 2013, interest on mortgages in Austria was around 2.5-3%. At the end of this term, the bank's default interest shall apply, which may be significantly higher. Interest levels are dominated by either interest levels that are either adjustable or adjustable, so it is important to know the differences. An interest float shall be a sum higher than the basic interest laid down by the SNB.

If, for example, your float interest is 1.5% higher than the basic interest then if the basic interest moves from 3% to 1% to 4%, your home loan officer will pursue it and move from 4.5% to 2.5% to 5.5%. Varying interest levels are fixed by the institution and have a tendency to match the basic interest level, but do not have to.

As a rule, loans are only granted by a bank. As with any credit request, you must give information about yourself and the real estate in order to obtain an Austria based credit. As a rule, the creditor will want to mail one of their employees to examine the flat and evaluate it.

Usually, if you have already arranged a rate with the vendor when applying for a home loan, it will be considered as the value of the home.