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Can foreigners get a mortgage in Italy?
Generally speaking the answer is yes, non italian residents can get an Italian mortgage, but not all banks offer mortgages to non residents. However there are some Italian bank which offer this opportunity to foreign investors who are willing to buy a house in Italy.
How do mortgages work in Italy?
A mortgage is a loan that the borrower receives in a lamp sum and repays it over time. The Borrower can chose to pay in fix or variable installments, and depending on possibilities he can repay it within a short or long term.
Getting an mortgage in Italy for buying a house or to build or renovate a property in Italy might be a good option for you.
Many foreign clients have asked us if this is an easy process, and we have given our advice to them on the best and fast way to proceed when interested in appling for a mortgage in Italy.
A mortgage in Italy usually grants 70/80% of the value of the property.
A surveyor engaged by the bank will valuate the property. Starting from this estimation the bank will calculate the amount of loan to release to the potential buyer.
The age of the applicant is also important. If the applicant is more than 70 years, tha Bank might require the signature of a younger person who will be liable together with the applicant.
What are the costs for getting an Italian mortgage?
If you are planning to apply for an Italian mortgage, there are costs which you need to take into consideration, for example:
- Broker commission
- Taxes
- Notary fees
- Application fees
- Surveyor fees
- Power of attorney or interpreter
The above are some of the costs you should condider when applying. You also need to know the time needed for obtaining a loan.
How long does it take to get a loan in Italy?
Once you have all documents ready, you can apply for your mortgage.
If the bank asks you for further information and documents, terms for releaseing a mortgage might increase. This is the reason why you can take more than one month to get it.
Therefore, in fortunate circumstances you get a loan in between five to seven weeks from your first application, however in many cases you can obtain it in about 3 months.
Italian mortgage rate 2021
Mortgage fees in Italy in 2021 are roughly the following:
- Mortgage registration fees: 0,25% to calculate on the mortgage amount. In case of second home purchase, this will be about 2%.
- Interest rate: 1.4% to 1.6% in 2021. They are the lower in our Italian history, but a slight increase has been experienced during the last year.
Here a few Mortgage in Italy calculator:
There are some interesting links where you can have a rough idea of your mortgage monthly rate.
www.mutuionline.it/guide-mutui/calcolo-rata-mutuo.asp
Documents you need when applying for a Home Loan
Here is a simplified list of documents required when applying for a mortgage in Italy.
- Copy of your passport;
- Proof of residency (recent utility bill or certificate of residence);
- Documents showing your incomes (if you are a salary employee the borrower will require your last 3 tax certificates and your contract of employment.);
- Initial sale agreement;
- Credit report;
- Tax return;
- Document showing your Marital or Single Status;
- If you are an Italian citizen residing abroad, an AIRE certification will be requested.
The list above might not be completed as it depends on each applicant situation.
Luxury Law has built strong business relationships with Italian banks and brokers. Depending on the area where you wish to buy a house, we will advice you and provide a list of banks and brokers who can assist you during the process of applying for a mortgage in Italy. Moreover, we can accompany you during the process
Contact us for your First Free Consultation or
email us at info@luxury-law.com or
Contact us via WhatsApp at +39 327 12 60 285
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