Mortgages for English Speakers in Vienna

Mortgages for English Speakers in Vienna

Mortgages for English Speakers & Expats in and around Vienna

Buying a property in the home country is already a big deal, buying in a foreign country adds some further challenges. Wouldn’t it be great to have someone on your side, who isn’t just advising as a mortgage broker, but also a true companion during the whole buying process?

So, if you are looking for a great loan and appreciate comprehensive support and advice, just call me at +43 660 233 47 46 or CONTACT me right away. Contacting me is free and surely very informative for you. Or continue reading and learn more about my services, the market in Vienna and how to calculate an approximate mortgage rate before reaching out to me.

Siegfried Haas Profilbild

"Good advice is expensive? No, bad advice is expensive, good advice is worth it!"

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My services for you

So, what is “being a companion” in my view? Let me show you the 6 steps in the purchasing process and what you can expect without additional charges:

Financial analysis:

Before even looking for a property it is crucial to know the own financial possibilities. The final question to answer will be: how much can one afford? With this, many things are to be considered. For example: own equity, income structure, expenses, family situation. This and more information are needed to know in which price range to look for.

Looking for a property:

I have accompanied hundreds of home purchases so I can give you my experienced opinion to the offers you are interested in. I also offer to come along with you to a second viewing of a property, once the choices have been narrowed down. When I notice things you should know I will tell you or suggest to get professional advice on a specific topic.

Making an offer:

Usually the real estate agent will provide you with an offer form. I will go through it with you, share my thoughts and make suggestions on what to fill out. I also have an idea of what you should ask and demand from the real estate agent, the property management and the owner before making an offer.

Applying for the loan:

This is the core of my business. I will of course do the negotiations with the various banks that come in question with the aim to provide you with a loan perfectly suited for you. A good interest rate is self-evident, but there are many more crucial details in the fine print.

Finding a trustee:

If you have the right to choose the trustee, I will gladly help you find one who is both reliable and inexpensive.

Purchase contract:

I have a lot of experience with purchasing contracts of properties and will go through your contract with you. If there is anything that I think you should know or get further advice on, I will make sure to let you know.

I receive a lot of encouraging feedback from my expat and English speaking clients that my way of support is found to be immensely helpful. If you have any questions, please do not hesitate to call me at +43 660 233 47 46 or CONTACT me.

Mortgage calculator

On the internet you will find tons of mortgage calculators, where you can play with different parameters, but usually you don’t get useful information. I want to do it a little different. In the end you want to have an idea of the monthly rate of a loan. As final conditions strongly depend on a lot of circumstances, I find this rule of thumb very helpful for a first orientation: 

Assuming you have about 20% capital saved and want a mortgage loan with a 20 year fixed interest rate. On basis of an average situation you have to calculate for every 100.000,- Eur loan with about: 

  • 495 Eur for a 30 year loan
  • 550 Eur for a 25 year loan
  • 620 Eur for a 20 year loan

For instance, a 200.000,- Eur loan for 25 years will be about 1.100 Eur per month. So now you can be your own mortgage calculator with more accurate results. I hope these figures will help you planning your home purchase. Please bear in mind that with less own capital the monthly rates will be higher and that the figures may deviate due to the current development of inflation. For further details you can always call me at +43 660 233 47 46 or CONTACT me.

Purchasing Property in Vienna – A Home-Buyer's Guide

If you are planning to buy a property in Vienna or the surrounding area, you might find the following information helpful. You will find information on the property situation, on home loans and on the particularities for expats and international employees.

Prices on the market in Vienna

In the last two decades the price for property in Vienna increased by 4,8% per year on average. This is clearly above the rate of inflation, which is below 2% in Austria. House prices increased a little bit less than apartments. Besides newly built objects you will find a huge market of pre-owned ones.

The market of pre-owned apartments can be roughly divided into 4 categories. The most expensive one is usually the one with buildings that have been built before the first world war (1914). The category built between the two world wars till about 1945 is very heterogeneous, it depends strongly on the object itself. Objects after World War Two can be categorised in two groups, the ones built before 1980 to 1990 and the modern ones.

Especially apartments built before the eighties often lack modern insulation and substantial quality whilst houses built later often meet modern quality requirements. As a rule of thumb, the newer the apartment, the more expensive it will be.

Legal situation for expats

Being a non-Austrian buyer, the first question for your main residence is whether you have a citizenship from an EU country (or your partner if you are buying together). In that case you usually are equated to an Austrian and can buy without a permit.

All other nationalities must get an allowance of the Real Estate Commission, which can take two or three months. Buying a property as your main residence and not having another property in Austria is usually a formality. But waiting for an allowance is sometimes not so welcomed on the seller’s side.

Mortgages and home loans in Austria

Being able to get a home loan in Austria depends on various things. Basically, you have to prove a stable income in Euro Currency. Employees should already have an unlimited working contract for at least 3 months. Being self-employed you should have at least two, better three annual income tax statements in Austria or at least in country with Euro as currency. The possible mortgage should be easily affordable for you, and you should have some money saved for the purchase. I know this is only vague information, but concrete figures depend very much on the whole situation also including the object itself and the rules of the bank where we will apply for the loan. Just to give you a rule of thumb: The mortgage should not be higher than 100 times your monthly income.

Mortgages for expats – legal situation

The legal situation for mortgages does not differ much from domestic buyers. You should have your main residence in Austria and a Euro based income. Income in foreign currencies usually will not be accepted for a home loan due to regulatory restrictions.

Sometimes there is a way around it, so please call me at +43 660 233 47 46 or CONTACT me in that situation.

Costs for mortgages

Buying a property in Austria and Vienna goes hand in hand with side costs and fees. Some are fixed, some are in a range. All together you can calculate with about 10% without and 13,5% with a real estate agent. Here are the most important ones:

Real estate transfer tax and registration fee: These two taxes are a total of 4,6% of the purchasing price. The real estate transfer tax is 3,5% and the registration fee is 1,1%.

Bank fees for mortgages and home loans: The costs of the home loan depend on the amount of money you are going to borrow. The two main cost items are the mortgage fee (usually 1,44% of the loan) and the loan processing fee, usually 3%. Sidenote: You may have asked yourself how much I charge for my services. So, good news, you won’t get an extra bill from me as I will get my honorarium from the bank, if we are successful in getting a home loan. Your advantage of this solution is that it’s without VAT, so you save 20%.

Creation of the purchase contract and trustee: These costs can vary and depend mostly on the trustee. If you buy a new property from a builder, they will determine the trustee and the price will be between 1,8% and 2,4% with exceptions. If you are in the position to choose the trustee, these costs could be reduced to probably 1,2%. I will help you with this.

Real estate agent: The costs for a real estate agent are usually 3,6% (3% + 20% VAT). Sometimes the seller will pay the agent. You then will find an information in the ad, for instance “Provisionsfrei für den Käufer”.

Other costs: For the authentication of the signature and other little costs calculate with an extra 1.000,- Eur.

Interest rates for mortgages in Austria

Interest rates for mortgages in Austria

A few years ago, it was common in Austria to take out a home loan with a variable interest rate, which will regularly adopt to the current market situation. The reason for that was the big difference between variable and fixed interest rates, which could be up to 2 %.

In the current situation the difference between fixed and variable interest rate is clearly below 1%. Therefore, having a fixed interest rate for 10 to 20 years could be very beneficial. In both variants you can expect an interest rate that is below inflation, which makes buying a property even more attractive.

Required capital for a home loan

It is recommended to have at least 20% capital when you are going to buy a house or an apartment. In reality it is not always possible to meet this expectation. Depending on your personal situation and the object itself it can be possible to buy a property with less own capital and still get very attractive conditions from the bank.

Just call me at +43 660 233 47 46 or CONTACT me, together we can figure out what is possible.

How to apply for a mortgage loan in Austria

You can apply for a home loan at a branch of a local bank or have it done by a licensed financial adviser (like me), who will help you choose the right bank for you and will do all the negotiations in your interest. In both cases you will need some documents. The requirements will vary depending on the bank, but the least you will be asked for is:

  • Proof of income: The last 3 pay slips (some banks need 6) for employees or the last 3 tax statements for self-employed.
  • Copy of passport, registration document (Melderegisterauszug)
  • Copy of proof of capital
  • Exposé of the property and/or
  • Land register extract
  • Pictures of the object, Map of the object including the size of the rooms in m2

Tips for expats applying for a mortgage loan in Austria

If you plan to stay longer in Austria, buying a property is definitely worth considering. Due to the side costs, you should plan to stay for at least five years, the longer the better. Don’t expect the property market to explode: Compared with international markets, the price movements in Austria have been more on the moderate side.

Getting a mortgage loan for an expat or international employee is usually not that much more difficult than for an Austrian, but things could be different than you might be used to in your home country. Having someone on your side to guide you through the whole process will give you more security and pay off. I would be glad to be your partner when it comes to buying a property and getting a home loan.

For any questions feel free to call me at +43 660 233 47 46 or CONTACT me.