Italy » Mortgages

Guide to the mortgages in Italy:

Keep in mind that for many countries, there is often more than one deal available and this page merely represents an overview of the typical requirements.

If you want to renovate a property, make a purchase or have construction in mind you can acquire mortgages in Italy for all these purposes. Securing a mortgage in Italy might be a slow process that requires a lot of forms to be filled. As soon as a property is selected a loan must be quickly applied for in order to secure the amount and make a quick property purchase. To apply for a mortgage in Italy one has to fill out a mortgage pre-qualification form. This form determines the status of the individual according to which he is granted the loan. It is a simple application form which is free of charge. Mortgage loans in Italy are based on affordability basis so all existing liabilities are taken into consideration when a financial assessment is being made.

Mortgages in Italy are available up to 80% of the purchase price. Euro mortgages are available. The applicant has to give proof of the source of income. The applicant may be required to provide copies of previous pay slips or bank statements. Criteria and rates for mortgages in Italy can vary in different mortgages companies. Normally Italian mortgages are available for over 5-30 years, with the maximum period being 40 years. The time period is not fixed and can vary, for example some banks may want the repayment within 10 to 15 years or by the age of 65. Some mortgage lenders in Italy would be glad to accommodate you with Interest only loans. The eligibility for loan is gauged by the applicant’s income etc and the potential rental income is not taken into account by the lender. Mortgages in Italy must be paid by the age of 70. For construction loans more detailed information is required.

Italian mortgages can vary from being interest-only to repayment mortgages. One can manage to arrange mortgage in advance in some cases with the terms of the loan offer being guaranteed for up to 3 or 4 months. But in most cases the applicant has to pay the capital and interest back each month. Before arranging for the mortgage  make sure that the property is registered at the Land Registry as mortgage finance in Italy can be obtained only if the property has the certificate and has been authorized as ‘habitable’. Positive news for 2009 is that international mortgage lenders are set to increase their levels of mortgage lending.