Home ownership in sight: KIM regulation brings new opportunities for families!

Home ownership in sight: KIM regulation brings new opportunities for families!

The KIM Ordinance, which has initiated a controversial debate about lending in Austria since its introduction, will remain in force until 2025. Mario Zoidl from the Upper Austria Chamber of Commerce expresses itself optimistically: "The dream of the home will be within reach for many by the non-extension of the KIM regulation", since it expects recovery in the real estate and construction sector. However, Michaela Keplinger-Mitterlehner, chairwoman of the banks in the Chamber of Commerce, warns that despite this good news, the strict guidelines still exist and that there can still be no final all-clear, as she said in an interview with the

loans and economic recovery in focus

The encounter of banks and supervisory authorities in a symposium in Wachau illuminates the tense economic situation in Austria, shaped by a recession and high inflation rates. According to Erwin Hateser from the Austrian Raiffeisenverband, the effects on the population and the economy are serious. Lending for private living space remains a central topic, since the return to stable economic conditions depends on the creation of a suitable political framework, according to the evaluation of the KIM Ordinance, as raiffeisenzeitung.at . In addition, Helmut Ettl emphasized the financial market supervision that the banks have become more resilient during the last crisis, even if the risk in the field of commercial properties increases.

The KIM Ordinance itself, which, among other things, stipulates that the repayment rates may be a maximum of 40 percent of the net income income remains controversial. Critics argue that the regulation has been issued at the worst time and that lending cannot be held solely responsible for the challenges in residential construction. The banks currently have hardly any credit losses, while the situation for commercial properties looks more difficult, which means an increased NPL quota (non-performance Loans). The last developments underline the need to find flexible measures to support the real estate market and at the same time manage default risks to maintain a stable financial sector.