Hi Retired
Coincidentally, the Austrian mortgage model was referred to last week at the Dublin Economics Workshop. I have been looking at it and have prepared a set of questions to ask one of the lenders in Austria.
I was wondering how it might apply in Ireland.
It does seem that there are some government subsidies involved. For example, a borrower has to save for 6 years first. The lender doesn't pay any interest - the government does. And the lender can issue mortgage bonds which are not subject to CGT on redemption so they can offer lower mortgage rates.
But I will be researching this Bausparen model in more detail to see if it would work in Ireland.
Brendan
just pointing out there may be merit in picking a house costing lets say 450000 and seeing how much bank will loan you and the balance required to meet all payment involved in buying a house ,Make sure you are sitting down when they give you the figures,
I do remember my Daughter saying something about waiting six years , If I recall correctly the waited almost 5 years but the max they could borrow was around 60% ,if i remember correctly the also pay vendor fees but I would need to cross check this, may be the other way around
I do know if they were to sell for any reason shortly after buying the would be down quite a lot of money,
I will check out figures when I am on to them and report back,
If i understood them correctly
Lets say you bought a 450000 house it would cost you 15% to 20% for fees /taxes 520000 to 540000
so you would get around 60% loan or 270000
You would need to have another 270000 to cover taxes and fees so really you only got a loan for around 50% of cost of house when all is taken in to account,
I am sure there must be a poster on hear who would be in a better position to give a more accurate figure ,
The point I am trying to make hear is you need to look at the total cost of buying a house and % of loan,
Posters feel free to correct any incorrect information,