In order to finance their dream home, 35% of respondents are able to fall back on their own savings, another 8% are helped out with family savings. As these own funds rarely suffice, additional capital is often needed. 36% of Austrians want to take out a loan for this purpose. The most popular form of financing the costs of new housing is the building society loan for 61%, while 57% are interested in a residential mortgage loan (multiple answers possible).
“We are strongly focused on fixed interest loans with long maturities in order to make monthly repayments calculable in advance, enabling one to rest easy for many years”, states Thomas Schaufler, chief retail officer of Erste Bank Oesterreich.
Need for security
What do Austrians require from their bank in the context of housing? Apart from favorable conditions (89%) and a good price-performance ratio (88%), primarily secure financing (87%) and competent advice from their personal advisor (77%) are expected. Customers tend to be quite well informed nowadays by the time they pay a visit to their bank branch office. Thus 64% are making use of online platforms to inform themselves about financing options ahead of an appointment.
Property registry replaces savings book
92% of respondents see real estate as a value-preserving asset and as a good investment option, particularly in a low interest rate environment (88%). 8 out of 10 moreover state that they would rather be making mortgage payments than paying rent. Property is the best form of retirement provision. Property ownership lowers the cost of housing and as a result creates more leeway in terms of disposable income in later years. “I strongly recommend taking advantage of the current opportunity to obtain a fixed rate loan at low interest rates. Particularly in the case of long term loans one should keep in mind that interest rates and with them monthly payments can rise again as well”, Schaufler adds.