Many foreign buyers of property in Austria will re-finance their main residence at home in order to purchase in cash in Austria.
However, with interest rates so low, taking an Austrian property mortgage is becoming an increasingly attractive option. Mortgage finance is readily available in Austria with the banks typically lending between 60 and 70% of a property’s value.
Currently, fixed and variable rates for your property mortgage are available from just 2.5%. GOOD TO NOTE! Long term investing is actively encouraged in Austria and capital gains tax is waived if a property is held for ten years.
A full range of mortgages are available for Swiss property purchases and rates are highly competitive. The minimum deposit usually required for a property purchase in Switzerland is 25%, with fixed rates for mortgages starting as low as 1.75%.
Non-resident foreigners can also purchase property, subject to federal law. Any mortgage must not exceed 80% of a property mortgage valuation or purchase price (whichever is lower). The usual terms are from 5 to 30 years up to age 70.
There are two main criteria for determining how much you can borrow: the value of your Swiss property and your financial situation.
Most Swiss lenders take into account your existing liabilities, including mortgage/rent payments, personal and bank loans, and maintenance payments. When these are added to your proposed Swiss mortgage payments, the total must not exceed 30% of your gross income (33% of net income). These percentages can vary.
Proof of income is required in all cases. This can be made up of earned income, pension, investment, or rental income. However, not all lenders take all of these into account when determining how much you can borrow.
Please contact us about our Swiss mortgage advisors for further information.