House home Loans

housing loans

Get a mortgaged to buy or renovate real estate in Italy Did you find your perfect home in the "boot-shaped" land and need a home loan from an Italien lender to buy it and see your dreams come reality? We have asked Efisio Borrelli, finance specialist at, to reply to the 10 most commonly asked queries we often get from house hunting enthusiasts in Italy.

Thus, as of today, there will be no more mysteries about obtaining a home loan in Italy. Which documentation do you need to obtain an Italien home loan in order to buy a house? "First, you must present your own identity papers (copies of your passport and your tax number) and those of the apartment you are buying: copy of the last title/sale agreement (Atto di provenienza), copy of the house maps (Schede Catastali) drawn up by the land registry (Catasto) and copy of the construction permit (Concessione edilizia) if you are going to carry out a renovation.

Which conditions must foreign nationals fulfil in order to be eligible for a mortgages with an Italien banking institution? Is there any cost associated with launching a home loan in Italy? The banks each charge a fee on the cost of handling the claim (typically between 1.00% and 1.50% of the amount of the mortgage), which is deducted directly from the amount delivered.

Not only does the EIB check the features of its customers (solvency, yield levels, creditworthiness), but it also checks the value and conformity of the building with town planning standards in order to have a legal operating warranty. Mean is 250-300 ?. The amount is directly payable to the adviser as he is not an associate of the institution.

In addition, the amount delivered will be subject to a one-off "substitute tax" (imposta sostitutiva) of 0.25% if the new home becomes your domicile or 2nd residence. A 00% discount on the amount of the loan if the new home is your second home. It is retained by the banking institution which makes the payments to Agenzia the Entrate on its customers' account.

Just think, you have received 100.000 of funding for the acquisition of your main home from a 1,00% paying up front cost banking institution. As soon as you have made the bill of sale for this real estate before a public official, we find a cheque or a money order of 98.750 ? or 97.000 ? for a second home.

How many percent of the value of the house (purchase price) does a credit in Italy have? As an example, if I need 30,000 euros, will the banks do it? "Foreign clients usually receive a credit that does not exeed 50-60% of the minors between the sale value and the estimated value of the properties. Often they buy a house in Italy to live on their pension.

But is there an upper and lower retirement date for taking out a credit? Can I pay for a credit in a different denomination than the EUR? What is the current interest level of a current mortgages? "Now, cash prices are currently at a historic low so you can find really good loans.

Given that each of the banks is free to levy the charges it considers appropriate, it is certain to say that the Italian housing financing markets offer a 2.5% to 3.5% interest fixing depending on the length of the mortgage, up to a limit of 50-60% of a home sale.

On the other side, a floating interest on average is around 1.5%-2.0%. They just said "fixed interest rate" and "variable interest rate". Are there any kinds of Italians? "They may have already been told about "fixed interest rates", "variable interest rates" and "mixed interest rates", which are the most frequent. Today, as the rates levels are as described above, mainly humans are choosing the first options we mention.

This is because the differential from the floating interest is relatively small, given the possibility of guaranteeing the security of a one-month charge for the whole term of the credit, which, as we have said, has a historic low interest level. My own personal experiences show that it is for the most careful clients and especially for those who have a steady salary and need to know about the commitments they make.

Floating rates are usually lower than floating rates, so they produce a lower interest charge, but since they are linked to interest rates, instalments tend to rise and fall. For those clients who are in a position to survive interest increases in order to later benefit from interest cuts, usually businessmen, professionals, etc., this is the right approach.

This made the use of the composite sentence superfluous - a sentence that offers the option of changing from a static to a floating sentence or the other way round according to pre-defined contract terms. The same applies to "constant rate" mortgage loans that are locked at a floating interest but require a fix interest with interest changes affecting the length of the mortgage rather than the amount of the month's installment.

For example, if an interest increase takes place in the case of a repayment schedule with a set interest payment of 500 per month, the borrowers end up indebted to the banks, and if the borrowers owe the banks 10,000 euros, the schedule is prolonged by 20 additional month.

Quite the opposite, if the interest over the years has always been lower than the interest stipulated in the agreement, i.e.'advantageous' to the client with regard to the return of principal, the loan ends in this case before the anticipated 20 years.

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