In October, residential mortgage interest rates in Austria reached their lowest level of the year. According to the latest Infina Credit Index (IKI), which determines the average interest rates for property loans on a quarterly basis, the key interest rate cuts by the European Central Bank (ECB) and the falling inflation rate are the main reasons for this development. With a variable interest rate level that fell by over 40 basis points in the last quarter, borrowing costs have decreased noticeably.

The low interest rates are a great opportunity for anyone who wants to purchase or refinance a property in the near future. Lower interest rates not only reduce the monthly outgoings, but also allow for long-term fixed interest rates at favourable conditions. A fixed interest rate, which can be set for 20 years, gives buyers stability and protects them from future interest rate hikes.

The decision between variable-rate and fixed-rate home loans depends on the individual needs and risk appetite of the borrower. Although the advantage of fixed interest rates has currently diminished, they still offer long-term planning security. By contrast, variable interest rates could fall further in the coming 18 months if the ECB maintains its policy of cutting interest rates. An independent consultation will help you find the right model.

With interest rates currently at a record low, now is the perfect time to secure favourable terms for a home loan. Professional advice from a home loan finance expert will help you choose the best loan model and benefit from low interest rates in the long term.

Source:IKI_102024_Wohnbauzinsen fallen im Oktober auf Jahrestiefstand.cdr