General information about residential property loans for consumers

This information was prepared by:

Erste Bank der oesterreichischen Sparkassen AG
Am Belvedere 1, 1100 Vienna
05 0100 - 20111

Residential purposes, such as building, buying, or renovating

  • Recording in the land register

A special feature of residential property loans is that an encumbrance on the financed property (land, house, condominium unit) is recorded in the land register in the form of a mortgage.

The mortgage is a lien on the property, and it is recorded in the land register. It serves as the lender’s collateral for its financing(s). Once the loan is repaid in full, you can arrange to have the mortgage deleted.

  • Other possible forms of collateral
    • Other financing recipients
      They are equally liable for all liabilities arising out of the financing. Co-borrowers normally draw their own benefit from the disbursed financing resources and are equally liable for repayment of the financing.
    • Guarantors
      Guarantors are liable to the full extent of their assets, and depending on the way the guaranty agreement is structured, they can be made to satisfy claims under the financing when it becomes due.
    • Pledging of, e.g.
      Salary claims, tangible assets such as savings passbooks, securities, gold
    • Assignment of cooperative shares
      The claims against a residential cooperative (= “paid-in cooperative shares”) are pledged. The collateral can be granted in hidden or open form.
    • Pledging or assignment of insurance policies
      In the case of a pledge, the insurance company disburses the insurance amount only to the lien holder when the insured event occurs. In the case of assignment (Vinkulierung), the insurance company undertakes to make payments in the event of a claim only with the consent of the provider of the financing.

      The following types of insurance are commonly pledged or assigned as collateral for financing:
      • Life and annuity insurance, casualty insurance
        Serve to cover the financing when life and/or annuity insurance comes due or when the policyholder experiences an accident
      • Residual debt insurance
        Serves to cover the financing when the borrower dies, as well as, depending on how the policy is structured, in the event of disability, unemployment, etc.
      • Fire insurance
        Is mandatory when pledging developed property.

        We accept foreign collateral after reviewing it.
  Variable interest rate Fixed interest rate Maximum interest rate
  Flexible Secure Flexible with cap and floor

Brief description

Your interest rate is periodically adjusted if the base interest rate changes, e.g. 3-month EURIBOR.

Your interest rate remains the same for the agreed period of the fixed interest rate. In addition, the composition of the interest rate thereafter is agreed upon when the loan is concluded.

The home savings loan has a fixed and a variable interest rate phase. There is an interest rate cap of 6% (pursuant to General Terms and Conditions for Home Loan Savings Contracts) for 20 years plus allocation period.

When and how does my rate change?

Your rate increases/decreases every three months.

During the fixed interest rate phase, the rate remains unchanged.

During the fixed interest rate phase, the rate remains unchanged.

When does each type make sense?

You want to use a low interest rate level and expect low interest rates going forward.

You do not want to be exposed to the risk of change for a certain period of time.

You are secured against a rise in interest rates over 6% (pursuant to General Terms and Conditions for Home Loan Savings Contracts) for 20 years plus allocation period.


Loan amount

€ 100.000,-


25 years

monthly instalment

€ 448,95

Effective interest rate on the basis of 10 years, fixed

2,7 %

Total costs

€ 135.994,44

Date: 1 March 2016

Not included are:

  • Notary fees for authenticating our signatures. They depend on the amount of the mortgage.
  • Other costs that may be incurred when buying property:
    • Estate agent fee of approximately 3%
    • Land-transfer tax of 3.5%
    • Ownership-transfer fax of 1.1%
    • Fee for drawing up the purchase agreement of approximately 1-2%
  • Joint principal and interest instalment, with adjustment: With a monthly joint principal and interest instalment, you repay principal and interest together. For you, that means instalments that are adjusted only when the interest rate changes.
  • Separate principal and interest instalment: With the separate principal and interest instalment, you repay principal and interest separately: principal, usually monthly, and interest, quarterly. Please be aware that every 3rd payment is higher.
  • Interest-only instalment (we now offer this only in exceptional cases):
    During the term, you pay only interest and fees, with the principal being due for repayment in one amount at the end of the term.
  • Without fixed interest rate: always repayable without penalty
  • Fixed interest rate and mortgage collateral: 1%, or 0.5% if the remaining term of the financing is less than one year
  • Fixed interest rate without mortgage collateral: €10,000.00 every 12 months without penalty

At the time the loan is granted or increased, we will appraise your property. We charge you the costs associated with this. For privately used Austrian real estate, you are generally not charged any additional costs for the periodically mandated reappraisals.

Depending on your situation, ancillary services may be mandatory, such as maintaining a salary account or insurance with us.

Failure to comply with the contractually agreed obligations may lead to additional costs and, in extreme cases, to sale of the property.

Version: March 2016