Politicians and business representatives are calling for a more generous easing of credit conditions. However, experts advise caution.
Since 2022, strict requirements apply to home loans. That and the rise in interest rates have led to a decline in lending by as much as 40 percent. Now there should be relaxations, but this does not go far enough for politicians and industry. The basic rules remain the same: a minimum of 20 percent equity is required, the loan may not run longer than 35 years and the repayment may not exceed 40 percent of the household income.
The rules for interim financing will be relaxed from 1 April, for example if a condominium is sold after the house has been built. The same applies to the pre-funding of non-reimbursable grants by local governments, for example a pledged but undisbursed grant from a federal state.
While experts from the AK and Wifo welcomed the easing as sufficient, ÖVP politicians in particular were dissatisfied. Tyrolean governor Anton Mattle criticized the 20 percent equity ratio as a hurdle that makes it impossible for young people in particular to fulfill their dream of owning their own four walls.
Finance Minister Magnus Brunner also indicates that he can envision further simplifications: “Borrowing must be more flexible, easier and better suited to people’s needs.” The real estate sector and banks would also like to see more easing.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
