End of the KIM Ordinance: More opportunities for home ownership in Austria!

End of the KIM Ordinance: More opportunities for home ownership in Austria!

Laimgrubengasse 10, 1060 Wien, Österreich - The financial market stilential committee (FMSG) decided on December 3, 2024 to let the credit institutions-real estate financing measures (KIM-VO) expire on June 30, 2025. NEOS MP Christoph Pramhofer welcomes this decision as an important step to promote the acquisition of home ownership in Austria and to enliven the domestic economy. Pramhofer emphasizes that the KIM-VO has severely hindered housing in recent years, in particular through the strict guidelines that often excluded young people without a home from real estate financing, which means that they had to bear much higher rental costs than credit rates, such as ots.at reported.

According to the FMSG, the proportion of failed residential loans has reduced by the KIM-VO, which shows that the regulation was effective, but the maintenance of these strict requirements is no longer necessary. However, the exams on the lending policy of banks are to be continued in order to minimize potential risks for the financial system. The KIM-VO, which was introduced in August 2022, aimed to secure the stability of the financial market by establishing certain rules for lending. ÖVP state captain Johanna Mikl-Leitner called the upcoming expiry of these regulations, according to the orf reporting. report.

criticism of the decision