Glossary: Mortgage & Property Austria

The systematic reduction of a loan balance over time through regular payments.

The fixed monthly payment combining interest and principal repayment on an annuity loan.

A subsidy in which the state directly covers part of the monthly mortgage repayment.

Refinancing the outstanding balance after the fixed-rate period expires.

The stage after signing the loan contract in which the loan amount is disbursed.

An Austrian state bonus paid on annual contributions to a Bausparvertrag savings account.

A state-subsidised Austrian savings and loan product for residential purposes.

The sustainable value of a property as assessed by the bank for use as loan collateral.

The bank's assessment of the borrower's creditworthiness during a loan application.

A guarantee by a third party to assume the full loan debt on behalf of the borrower.

A right of use or passage over a property granted in favour of another person.

The ratio of all monthly loan repayments to monthly net income.

The total annual cost of a loan including all fees — not just the nominal rate.

The annual effective interest rate (APR) including all mandatory costs, expressed as a percentage.

A state incentive for people buying or building their first owner-occupied home.

The personal funds a buyer contributes to a property purchase.

The percentage share of equity relative to the total financing requirement.

Owner-occupation: a property used directly by the owner rather than rented out.

The full and legal right of ownership over a property.

The unique registration number identifying a property within an Austrian land register district.

A valuation method for investment properties based on expected rental income.

Euro Interbank Offered Rate — the reference rate for variable mortgages in the euro area.

A detailed plan summarising all costs and funding sources for a property purchase.

A mortgage interest rate that remains fixed for the agreed term.

A loan agreed today with a future disbursement date, locking in current interest rates.

The total amount of interest, fees, and all charges associated with a loan.

The public register of all properties in Austria, listing owners and encumbrances.

The fee for registering ownership or a mortgage in the Austrian land register (1.1%).

A tax on property purchases in Austria, amounting to 3.5% of the purchase price.

An expert document assessing the value of a property.

The A-section of the land register listing the physical components of a property.

A comparison of monthly income and expenses showing the capacity to service a loan.

The bank's security right over a property pledged as collateral for a mortgage.

A property lien recorded in the land register specifically for mortgage financing.

A general rise in the price level and a decline in the purchasing power of money.

The smallest administrative unit in the Austrian cadastre and land register.

The Austrian regulation (in force Aug 2022–Jul 2025) governing residential mortgage lending.

A formal mortgage application submitted to a bank.

The bank's assessment of a borrower's ability to repay a loan.

The individual contractual details of a loan: interest rate, term, repayment, extra payments.

The maximum loan amount a bank grants to a borrower.

Insurance that covers the outstanding loan balance in the event of death or disability.

The binding contract between borrower and bank governing all mortgage terms.

A written bank approval committing to lend a specified amount under certain conditions.

The Austrian credit protection association — comparable to Germany's Schufa.

A numerical credit score calculated by KSV representing a person's creditworthiness.

The C-section of the land register (Grundbuch) showing mortgages and other property encumbrances.

The agreed period over which a loan is fully repaid.

The rate at which banks refinance with the European Central Bank.

The ratio between the loan amount and the property value as a percentage.

The commission paid to a real estate agent for brokering a purchase or rental agreement.

The achievable price of a property on the open market at the time of valuation.

The ratio of annual rental income to the purchase price (gross rental yield).

All additional costs beyond the purchase price when buying property (approx. 10–12%).

The stated interest rate of a loan excluding additional fees.

Costs for the notarial certification of the purchase contract when buying property.

The right to use and benefit from a property belonging to someone else.

A land-register entry granting the lender rights over the borrower's property under certain conditions.

The priority ranking of mortgage claims as determined by land register order.

Insurance that temporarily covers monthly loan repayments in the event of unemployment or illness.

An investment property purchased for rental income rather than owner-occupation.

The outstanding loan balance remaining at the end of the fixed-rate period.

The outstanding loan balance or estimated future property value after a defined period.

A property valuation method based on the construction cost of the building.

A federal subsidy voucher for energy-efficiency renovations.

The party obliged to repay a debt (in a mortgage: the borrower).

The nominal interest rate applied to the loan balance (excluding additional charges).

An unscheduled extra repayment of loan principal outside the regular monthly instalment.

The fixed interest margin added by the bank on top of the EURIBOR reference rate.

The repayment of the borrowed loan principal.

A tabular overview of all loan payments showing interest and principal components over the full term.

The borrower's ability to service loan repayments sustainably.

An escrow arrangement where a notary or lawyer holds the purchase price until land registration is complete.

Replacing an existing loan with a new one, often at more favourable terms.

An interest rate that adjusts regularly (usually quarterly) in line with EURIBOR.

A fee that may apply when repaying a fixed-rate loan before the end of the fixed-rate period.

State housing subsidies offered by Austrian provinces for buying or building a home.

A life-long or time-limited right for a specific person to reside in a property.

Periodic interest-rate update on a variable-rate loan tied to EURIBOR.

The period for which the interest rate of a loan is fixed.

A contractually agreed upper limit on a variable interest rate.

A forced sale of a property by court order when the borrower cannot meet repayments.