From July 1, 2025, significant changes to residential construction financing will come into force. The KIM regulation (Kreditinstitute-Immobilienfinanzierungsmaßnahmen-Verordnung), which has been in force since 2022, expires on June 30, 2025. This means: more flexibility in terms of equity and loan terms - especially for households with a good credit rating. We show you what will change, what will stay the same and what you need to watch out for.
Background: The end of the KIM Regulation
The following key points have applied since July 2022:
- At least 20 % Equity
- Maximum 40 % monthly credit burden (debt service ratio)
- Maximum term of 35 years
These requirements were mandatory for all banks. This legal obligation ends on June 30, 2025 - the Financial Market Stability Board sees no need for an extension.
What does this mean in concrete terms for borrowers?
- No more legal minimum requirementsBanks are now allowed to examine and grant loans more individually.
- Equity ratioNo longer a fixed limit, but 10-15 % is still considered a realistic lower limit for solid credit ratings.
- Debt service ratio: No longer a 40-% obligation, but it remains as a guideline.
- Longer running times: Also possible over 35 years, if economically justifiable.
Supervisory recommendations remain in place
The Financial Market Authority (FMA) and the Oesterreichische Nationalbank (OeNB) recommend continuing to pay attention to financial stability despite the easing of restrictions:
- Banks should audit responsibly
- Households must not be overburdened
For consumers, this means that those who are heavily in debt risk rejection even without the KIM-VO.
Opportunities for first-time buyers and families
- Easier accessHouseholds with a medium income have better chances.
- Scope for buyers with strong credit ratings:insideFor example, the self-employed or people with high equity.
- Option for special modelse.g. combination of fixed-rate start phase + variable-rate connection.
Risks and tips
- No carte blancheBanks remain cautious - especially with fluctuating incomes or low reserves.
- High installments can become a debt trapEven if more is possible, not everything makes sense.
- Observe interest rate trendsFixed interest rates are currently at 2.65-2.95 %, variable at approx. 3.24 %.
Vienna & Salzburg: What does that mean regionally?
- ViennaDemand in low-cost segments is rising - initial figures already show significantly higher loan volumes.
- SalzburgHere, too, families and young buyers are benefiting from the easing, especially in middle locations.
Look out for additional state subsidies and combine these specifically with bank offers.
Key Takeaways
- KIM regulation expires - more flexibility from July 2025
- No more fixed equity or installment requirements
- Banks are now examining more individually, but remain cautious
- Families & first-time buyers benefit in particular
- Advice and comparison of offers more important than ever
Conclusion
The end of the KIM regulation means more options for many people interested in real estate. But flexibility is not a carte blanche: If you make smart comparisons now, calculate realistically and take advantage of targeted advice, you can clearly benefit from the new start for home loans. Get advice from a financing expert and make the most of regional subsidies!
Read also:
"Real estate financing 2025: Your path to home ownership" - The article explains the combination of financing, fixed interest rates & advised decisions - ideal in conjunction with current credit relief.
