They don't like high levels of borrowing as a percentage. 40% deposit minimum over 10 or 15 years is typical. The current rate in July 2011 is about 3.00%p.a.  
However, we also work with a large insurance company who will finance the purchase of private houses and apartments. They will not finance businesses.  Their rate is about 2.5% p.a. but the interest rate is currently capped at 5%.  They do not charge any arrangement fees, neither are there any penalties for early repayment.   These are excellent terms. (July 2011)

Banks usually charge 2% of the sum borrowed for arranging the loan and a few months later the land registry issues a bill for your mortgage entry into the Austrian land registry. This is also about 2%.

Insurance

In Austria, the insurance policy "goes with the house".  You have 28 days from receiving the final completion papers from the court to decide whether to change insurers or you are stuck with the previous insurance policy.  That policy may well be fine, but if you need to claim or discuss its contents that might prove difficult if you cannot speak German.  We, therefore, suggest that you change the policy initially as we have a contact with an insurance company who's representative is English speaking and is happy to offer you the guidance that you need.  This is a good step initially as you can always change again later but for the initial years it is better to have a contact that you can talk to.  Ask us for guidance.