Can you buy with 5–10% in savings?

A conventional mortgage is usually a stretch if your savings cover only 5–10% of the cost. Even after Austria’s binding mortgage rules expired in June 2025, banks commonly look for around 20% of the total cost, including transaction fees. Your options depend on how much cash you have today and whether you want to own a share as soon as you move in. They range from buying a share with an investor to renting with an option to buy or saving for a larger deposit.

This guide provides general information. For financial, tax or legal advice, speak to a qualified professional.

Why banks still ask for substantial savings

Austria’s KIM-V mortgage regulation expired on 30 June 2025. The Financial Market Authority (FMA) still expects prudent lending and uses three benchmarks. The loan should generally be no more than 90% of the property’s value, annual repayments no more than 40% of annual net income, and the term no longer than 35 years. Banks can make exceptions if their risk policies support the decision. (FMA)

Kroy Immobilien reports that banks still typically expect buyers to contribute around 20% of the total cost, with 20–30% common in Vienna and Salzburg. Capitalo gives a similar benchmark. A bank’s loan-to-value calculation and the cash you need to complete the purchase are separate. Taxes and fees can account for a substantial share of that cash. (Kroy Immobilien · Capitalo)

Purchase cost	Typical rate or basis
Property transfer tax	3.5%
Registration of ownership in the land register	1.1% of the value of the right being registered
Mortgage registration	1.2% of the value of the mortgage right
Estate agent’s commission	Up to 3%, plus 20% VAT, per party
Contract preparation and escrow	Varies
Total transaction costs	Around 10–12% of the purchase price

The temporary exemption from ownership and mortgage registration fees for qualifying homes ended for new applications after 30 June 2026. Applications already lodged by the deadline may still qualify. (Brandauer Rechtsanwälte · LeitnerLeitner)

A €300,000 flat, worked out. Allow €30,000–€36,000 for purchase costs, bringing the total to €330,000–€336,000. If the bank expects you to cover 20% of that total, you need €66,000–€67,200 in cash. Even a buyer who can afford the monthly repayments may struggle to raise that amount upfront.

Seven routes at a glance

The order prioritises how soon you can own a share, followed by how much cash you need upfront. Compare the costs, risks and eligibility requirements for each route before deciding.

Route	What you need upfront	When you become an owner
1. Co-ownership with investors	From around 5% of the purchase price, subject to pinyya’s assessment	From purchase, for the share you acquire
2. A mortgage exception	Potentially less than the usual 20%, at the bank’s discretion	From purchase
3. A mortgage with family support	Funds may include a gift, or the bank may consider a guarantee as additional security	From purchase
4. A subsidised owner-occupied flat	Financing and eligibility for Vienna’s subsidy scheme	From purchase
5. Private rent-to-own	Project-specific upfront payment and security deposit	When you exercise the option and complete the purchase
6. A subsidised housing association flat with a purchase option	A qualifying initial contribution	From the sixth tenancy year at the earliest
7. Keep saving	Enough to meet the bank’s requirements when you apply	After you have saved enough and completed the purchase

1. Buy a share with investors

With pinyya’s co-ownership model, you buy the share you can afford, live in the home from the start and rent the remaining share. Property investors fund that share through a regulated structure. You can increase your stake over time as your budget allows.

pinyya describes an entry point of around 5% of the purchase price, depending on the case. Your monthly costs cover your own share, market-rate rent on the remaining share and a management fee estimated at about €25 per month per project. An upfront setup fee covers structuring and documentation. You can increase your share, pause further purchases or sell part of your stake under the model’s rules. A full exit requires a sale of the property. (pinyya)

This can suit people who can afford the monthly costs but have limited savings or income that is hard to document in the format banks expect. Before you commit, ask how purchase costs are split, how future shares are valued and how a sale works. pinyya’s eligibility check can help you estimate the share you might be able to buy. A consultation can clarify the terms for your case.

2. Ask whether a bank can make an exception

Banks can depart from the FMA benchmarks when their lending policies allow it. Show how your household budget would cope with higher interest rates and ask whether additional collateral, such as another property, would help. An independent mortgage broker can help you compare lenders.

If you’re self-employed or run a company, be ready to show three years of tax assessments and accounts. Lenders may use the three-year average and assess director’s pay, dividends and other personal income separately. (selbststaendig-machen.at)

If you’re buying later in life, lenders assess whether you can afford the loan throughout its term, including in retirement. A shorter term raises the monthly payment. A larger contribution or a smaller amount to finance can make the numbers easier to manage. (Infina)

3. Buy with help from family

An outright gift can count towards your contribution once the money is yours and there is no obligation to repay it. A guarantee or co-liability arrangement makes a family member liable for the loan under the agreed terms. Put the arrangement in writing so everyone understands their obligations. This route depends on the cash or security your family can provide.

4. Look for a subsidised flat in Vienna

Vienna subsidises some homes for owner-occupiers. For the income limits in effect through 31 December 2026, the combined annual net income of everyone moving in can be up to €70,030 for one person, €104,370 for two, €118,100 for three or €131,840 for four, plus €7,700 for each additional person.

You also have to demonstrate an urgent housing need, register the flat as your main residence and give up your previous housing rights within six months. The subsidy can lower the cost of buying. You still need to arrange financing for your purchase. (City of Vienna)

5. Rent first, with a private option to buy

On selected Vienna projects, ARWAG fixes the purchase price in the contract upfront and credits 100% of the net base rent already paid towards that price. It describes a minimum rental term of five years with the option to buy during the rental period, and requires an upfront payment and a security deposit to secure the option. Rentinvest also offers rent-to-own for some existing properties in the Vienna area. (ARWAG · Rentinvest)

The option gives you time to build savings or establish an income history. You still need to fund the purchase when you exercise it, typically with a mortgage.

6. Rent a subsidised housing association flat with a statutory purchase option

For qualifying leases signed from 1 August 2019, AK Wien lists several conditions. The initial financing contribution must exceed €91.86 per square metre of usable floor area (as of 1 April 2025). The flat must be larger than 40 m² and the building no more than 30 years past first occupation. The building must be free of a building right (Baurecht), housing subsidies must have been in place when the lease was signed, and you need Austrian citizenship or equivalent legal status.

You can apply once in each of three windows, covering years 6–10, 11–15 and 16–20 of the tenancy. The housing association has three months to make a written offer at a fixed price. If you resell within 15 years, you must pay the difference between the purchase price and market value under the scheme’s rules. (AK Wien)

If the initial contribution is the hurdle, Vienna offers an Eigenmittelersatzdarlehen, a loan towards eligible land and construction contributions. For one person, the annual net income limits cited in the original range from €28,450 to €47,510 depending on the tier. Repayment terms are 10, 15, 20 or 25 years. (City of Vienna)

7. Keep saving and use the wait as a benchmark

If you need €66,000 and can put aside €800 a month, it takes just under seven years starting from zero, before interest or price changes. Factor in the rent you’ll pay in the meantime and the possibility that the kind of flat you want will cost more when you’re ready. This gives you a baseline for comparing the other routes.

If you recently moved to Austria

Buying permission and mortgage approval are separate. EU and EEA citizens are generally treated like Austrian citizens for property purchases in Vienna. Buyers from outside those groups should ask the city whether they need authorisation or qualify for written confirmation of an exemption. (City of Vienna)

Ask lenders early which foreign payslips, tax records and other documents they accept. A year or two of employment in Austria can leave you with a shorter record than the lender wants. pinyya’s first-home guide says Austrian citizenship is unnecessary for its model and that legal residence in Austria and standard identity and compliance checks are required. (pinyya)

For estate agents, mortgage brokers and developers

If financing falls through late, start with the reason. A buyer with 5–10% saved and enough income to cover monthly costs may be able to buy a share with investors. If repayments are just above the 40% benchmark, consider whether a smaller financed share or a lender that can make an exception would help. Developers can use rent-to-own or co-ownership to make existing projects accessible to more buyers. Contact pinyya to discuss whether a specific case fits its model.

Frequently asked questions

Can I buy in Vienna with 5% upfront?

A conventional mortgage usually requires more cash. pinyya says some aspiring homeowners can start with around 5% of the purchase price by buying a share alongside investors.

Does KIM-V still apply in 2026?

The regulation expired on 30 June 2025. The FMA still uses the 90% loan-to-value, 40% debt-service and 35-year benchmarks, with room for lenders to make exceptions.

What if the bank leaves my dividends out of its calculation?

Prepare three years of tax assessments and accounts, show director’s pay and dividends separately, and ask several lenders how they assess both. The original source reports that banks increasingly use a three-year average.

Can I still get a mortgage at 48?

Banks assess whether you can repay through the full term, including retirement. A shorter term raises the payment, so consider how a larger contribution or a smaller financed share would affect your budget.

What can I do after a mortgage refusal?

Try another lender through an independent broker, ask your bank whether it can make an exception, or look at family support and co-ownership. Clarify financing before signing a binding offer.

Where can I find rent-to-own in Vienna?

Look at selected projects from providers such as ARWAG and offers on existing flats from companies such as Rentinvest. Qualifying subsidised housing association flats have a separate statutory purchase option from the sixth tenancy year.

How much should I budget on top of the price?

Allow roughly 10–12% for transfer tax, registration fees, any agent’s commission, contract preparation and escrow. The exact amount depends on the transaction.

How do rent-to-own, part-sale and co-ownership differ?

With rent-to-own, you rent first and may buy later. In a part-sale, someone who already owns a property sells a share and pays to keep using it. With investor-backed co-ownership, you buy a share from the start and pay rent on the rest until you acquire it.

Sources from the original article

FMA, „FMA erwartet nach Auslaufen der KIM-V solide Wohnkreditvergabe mit Hausverstand“, 26 June 2025.
Kroy Immobilien, „Eigenkapital Immobilienkredit 2026: Nach der KIM-Verordnung“, updated 14 September 2026.
Capitalo, „KIM-Verordnung Österreich: Regeln, Auslaufen & was gilt“, updated 19 August 2026.
Brandauer Rechtsanwälte, „Kaufnebenkosten beim Immobilienkauf 2026“, 9 May 2026.
LeitnerLeitner, „Befristete Befreiung von der Grundbuch-Eintragungsgebühr läuft mit 30. Juni 2026 aus“, 17 April 2026.
City of Vienna, „Voraussetzungen und Bedingungen für geförderte Eigentumswohnung“, „Eigenmittelersatzdarlehen für geförderte Wohnungen“ and „Ausländergrunderwerb, Genehmigung und Negativbestätigung“.
AK Wien, „Genossenschaftswohnungen mit Kaufoption“, financing contribution as of 1 April 2025.
ARWAG, „Mietkauf Wohnung Wien“, and Rentinvest, accessed 23 September 2026.
selbststaendig-machen.at, „KIM-Verordnung ausgelaufen: Was Selbstständige wissen müssen“, 1 June 2026.
Infina, „Kredit aufnehmen im Alter“, 6 May 2026.
pinyya, „Eine Wohnung kaufen“, „Raus aus der Miete, rein ins Eigentum“ and “How to Buy Your First Home in Austria”, accessed 23 September 2026.