Regulatory Alerts2025-06-26
FMA Circular on Sound Private Residential Real Estate Lending (Article 5 para. 1 KI-RMV)
The Austrian Financial Market Authority (FMA) issued this circular to establish supervisory expectations for sound private residential real estate lending following the expiry of the KIM-V regulation. The document mandates that credit institutions adhere to specific underwriting criteria, including a maximum debt service-to-income ratio of 40%, a loan-to-collateral ratio not exceeding 90%, and a maximum loan term of 35 years. Institutions must ensure that deviations from these standards are internally defined, strictly limited to 20% of new quarterly lending, and subject to rigorous monitoring and documentation.
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