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Barriers to home loans are getting higher

On August 1st – a month later than planned – the new regulation will come into force. With a loan of 300,000 euros, 60,000 euros must then be available. In addition, no more than 40 percent of the household net income may be spent on installment payments. The loan can also have a maximum term of 35 years. Loans of up to EUR 50,000 are excluded.

A third would get no credit

For many home builders, this could become an insurmountable obstacle. The comparison portal “Durchblicker.at” has calculated that around a third of the most recently granted loans could no longer be granted under the new conditions. At the Raiffeisen-Landesbank Niederösterreich-Wien – as well as at the Hypobank Niederösterreich – this number is considered too high. It is emphasized that these were already common limits of reputable banking institutions.

But, according to Alexander Stegbauer from Raiffeisen-Landesbank Niederösterreich-Vienna: “In the past few years, we have repeatedly been confronted with competitors who have given very long terms and have not asked for any equity. So I believe that there was or is a fair number of people who no longer get this financing, which they received from other banks in the past – not from Raiffeisen.”

Real estate prices, raw material costs and interest rates rise

Due to the construction boom in combination with the low interest rates, the National Bank warned of signs of the credit market overheating and the financial market supervisory authority drew up these limits in order to curb “increasing systematic risks”, as it is said. Alexander Stegbauer from Raiffeisen: “It’s clear where the concern comes from. Anyone who has observed house prices over the past few decades will find that they have reached levels that are absurdly high compared to 10 or 20 years ago. Of course, these are prices that you first have to be able to afford.”

Commodity prices, interest rate increases – the new rules are intended to avoid a bubble of loans that can no longer be repaid, according to Stegmüller: “What is being prevented with this regulation are ‘frayed’ credit regulations in which the customer is ultimately left behind . That is cushioned.” The expert rules out the fact that young families are completely denied the opportunity to own their own home as a result. There is an individual solution for almost every situation, he says.

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