Mortgages and insurance
Should you need finance . . .
We strongly suggest that you
arrange your finance in Austria. We can introduce you to suitable
friendly banks who normally arrange things very quickly. That
said, due to the world crisis they are now looking at mortgage lending
rather more prudently.
Rates are cheaper, and sending surveyors out from England
or any other EU country and then taking
mortgages on foreign property is a rather expensive and messy business.
Clients who have tried to finance their purchase from the UK
or other countries have usually encountered difficulties.
Our agents can usually fix up a mortgage on a holiday property in 48
hours.
If you are
buying a business, then you will need to prepare a
proper business plan and cash-flow. Banks in Austria
are generally supportive of business purchases
provided you have done your homework correctly.
They don't like high
levels of borrowing as a percentage. 40% deposit minimum over 10 or 15
years is typical. The current rate in July 2011 is
about 3.00%p.a.
However, we also work with a large insurance company who will finance
the purchase of private houses and apartments. They will not finance
businesses. Their rate is about 2.5% p.a. but the interest rate is
currently capped at 5%. They do not charge any arrangement fees,
neither are there any penalties for early repayment. These
are excellent terms. (July 2011)
Banks usually
charge 2% of the sum borrowed for arranging the loan
and a few months later the land registry issues a
bill for your mortgage entry into the Austrian land
registry. This is also about 2%.
