The number of mortgage loans granted to finance real estate has fallen massively. This is confirmed by the Credit Protection Association (KSV). In Vorarlberg, loans fell by 51.8 percent.
According to KSV, demand for mortgage loans fell massively in the first three quarters of 2023. The decline is most noticeable in Vienna (-57.6 percent), followed by Tyrol (-52.2 percent) and Vorarlberg (-51.8 percent). The decline is lowest in Carinthia at 46.7 percent.
KIM regulation with high requirements
According to the KSV, the main reason for this is the high requirements of the Real Estate Financing Measures Ordinance (KIM Ordinance), which came into force on August 1, 2022. Among other things, this stipulates that 20 percent of the loan amount must be raised by the borrower himself. In addition, the monthly payment when repaying a loan may only amount to 40 percent of the respective household income.
Young people in particular are affected
The requirements particularly affect young people up to the age of 35, who are increasingly less likely to be able to fulfill their desire to own their own home. In general, according to the KSV, the higher the loan volume, the greater the decline in lending.
2023-11-10 05:24:05
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