Four out of ten home buyers and house builders fail the new lending guidelines, but still receive a bank loan in exceptional cases.
The new, stricter lending guidelines have been in force in Austria since August 1st. These stipulate an equity ratio of 20 percent for real estate loans, the loan rate must not exceed 40 percent of the household net income and the loan term must not exceed 35 years. If these new procurement guidelines were to be applied to all new contracts, then, according to the analysis of the tariff comparison portal Durchblicker, almost 39 percent of previous borrowers would no longer receive real estate financing in the future.
But – and this is the good news – many customers will continue to receive a real estate loan in the future – even if they do not meet the new minimum criteria. This is made possible by an exception contingent. The banks may make an exception for a maximum of every fifth loan concluded.
The Association of Real Estate and Asset Trustees in the Austrian Economic Chamber condemns the new regulation on the granting of housing loans. They come at the wrong time and would be impractical, according to Deputy Chairman Michael Pisecky.
Above all, the professional association is critical of the practical application of the rules, since the FMA did not think about the frequently occurring interim financing between the sale of an apartment and the purchase of a larger apartment such as apartments for rent in Fort Wayne. This can only be done via the exceptions and makes the real estate transaction more difficult or more expensive.
It is also completely incomprehensible for the industry representatives that the amount for financing restructuring measures is capped at EUR 50,000 per borrower. Michael Pisecky: “Many private households will have to change their heating system in connection with renovation in the next few months. As a rule, this amount will not suffice.”