Home loans. On July 1, 2025, significant changes to residential mortgage financing took effect. The KIM Regulation (Regulation on Credit Institutions’ Real Estate Financing Measures), which had been in effect since 2022, expired on June 30, 2025. Since then, this has meant greater flexibility regarding down payments and loan terms—especially for households with good credit ratings. We’ll explain what has changed since then, what has remained the same, and what you need to keep in mind.
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 expired on June 30, 2025—the Financial Market Stability Committee sees no need to extend it.
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 trends
Vienna & Salzburg: What does that mean regionally?
- Vienna: Demand in the low-cost segments is rising—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 – Home Loans
- KIM Regulation Expired Last Year – More Flexibility
- 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 opportunities for many prospective homebuyers. But flexibility isn’t a free pass: Those who compare options wisely, make realistic calculations, and seek targeted advice can clearly benefit from the new rules for home loans. Let a financing expert guide you and make the most of regional incentives!
Read also:
„Real Estate Financing 2026: Your Path to Homeownership“ - The article explains the combination of financing, fixed interest rates & advised decisions - ideal in conjunction with current credit relief.
FAQs – Home Loans
What has changed regarding home loans since July 2025?
With the Expiration of the KIM Regulation There are no longer any legally mandated minimum requirements regarding equity, loan installments, or loan terms. Banks can now grant loans with greater flexibility.
What was the KIM Regulation?
Since 2022, the KIM Regulation has governed residential mortgage financing and, among other things, stipulated that. At least 20 % in equity, a maximum debt service ratio of 40 % and 35-year term before.
Will there still be a minimum equity ratio in 2026?
No, not anymore under the law. In practice, however, banks still expect approximately 10–15 % in equity, depending on creditworthiness and income.
Does the 40-percent rule still apply to loan payments?
The 40-% limit is no longer mandatory, but it remains a important benchmark for banks, so as not to overburden households.
Are longer loan terms now possible?
Yes. Terms of more than 35 years are possible again, provided they make economic sense and are affordable.
