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The state of Upper Austria and Hypo Upper Austria have developed a new type of subsidy for house builders to give some support to private residential construction.
A 35-year loan will be offered until December 31, 2024, which includes a fixed interest rate of 4.2 percent for the first 20 years, which falls to 2.95 percent through a state subsidy. After 20 years, the fixed interest becomes variable, based on the 3-month Euribor.
The loan is concluded between homeowners and hypo and has an upper limit. The maximum amount for an individual is 75,000 euros; a family with two children can borrow a good 100,000 euros using this instrument.
Provincial Governor Thomas Stelzer (VP) and his deputy and housing consultant Manfred Haimbuchner (FP) want to use this step to stimulate private housing construction again, which has recently declined massively. In the previous year there were 1,100 approvals for housing loans, this year there are not even 500, according to the department for housing subsidies. The new campaign can therefore be funded with the existing funds.
For Hypo boss Klaus Kumpfmüller, the loan is “a contribution that young families can still afford to own their own home in the difficult market situation.”
Source: Nachrichten
