We strongly suggest that you arrange your finance in Austria. We can
introduce you to suitable friendly banks who normally arrange things very
quickly.
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%.
