****JavaScript based drop down DHTML menu generated by NavStudio. (OpenCube Inc. - http://www.opencube.com)****
 |
MORTGAGE GUIDELINES FOR FOREIGNERS IN ITALY
Casambiente has the expertise to help you and guide you through the mortgage procedure: from choosing the bank, collecting and presenting the documents to helping you with the application, the final notary deed and the written/oral translation. Needless to say, we also assist in negotiations. The following is a basic guideline as to the procedures you would expect in the mortgage process. As each bank's procedures, and the context of their legal documents, differ slightly, we have simplified the following information to make it more easily understandable: 1. PRELIMINARY INVESTIGATION The bank will collect all the client's income statements and the legal documents pertaining to the property to be purchased. All documents will be thoroughly reviewed. It normally takes approximately 1-2 months from the time the documents are submitted to the bank until the loan is paid out. During this first stage, a bank surveyor will be assigned to draw up an evaluation of the house and property. The valuation usually reflects the house itself rather than the land property, although this may differ depending on the case. The costs of the survey (€500.00 - €600.00) are borne by the loan applicant. The survey is presented to the bank, who will typically accept a loan-to-value ratio of 60% - 70% of the value established by the survey. Persons with permanent residency in Italy may obtain up to 90% of the survey value. 2. TYPES OF MORTGAGES There are quite many different types of mortgages that can be obtained in Italy. Typically, mortgage maturities range between 10 and 20 years, occasionally even up to 30 years. One of the most favourable and widely chosen mortgages is the Mixed Mortgage. This type of mortgage offers a fixed rate for the first 2 years. After the two-year period you may renegotiate the contract and either remain at a fixed rate or choose a floating rate. Please bear in mind that the risk of rising interest rates in the case of variable or short-term interest rate fixings on the mortgage may be considerable. 3. MORTGAGE REDEMPTION You can decide to pay your mortgage redemptions monthly or semi-annually. On a 20-year maturity, rate savings typically amount to approx. 0.50% when choosing monthly mortgage payments. The shorter the mortgage maturity, the higher will be the redemption rate required by the bank. 4. CLOSING On the date of closing you will sign the bank mortgage contract at the office of a notary public. With the signing of the mortgage deed, the bank is often prepared to advance an initial part of the loan (approx. €75,000.00), the remaining balance however will be paid only after the registration of the debt in the national mortgage register. This will usually take about one month. The bank will deduct its expenses from the initial payment, generally being 0.20% of the loan amount as well as 0.25% tax. 5. COST OVERVIEW The following costs are exemplary and based on a hypothetical mortgage amounting to €165,000.00:
6. TAX REBATES FOR PERMANENT RESIDENTS You are able to deduct up to €3,500.00 of the interest on the loan from your annual tax filing. However, you can only deduct these expenses if the house is your primary residence and you sign the bank loan contract within 6 months before or after the purchase of the house. You are welcome to download this text in PDF format. For more detailed information, please contact us directly via email! |
 |
|
The real estate agency in Italy for houses and properties in Umbria, Tuscany, Le Marche and Lazio • Immobiliienagentur in Italien für Häuser in Umbrien, Toskana, Marken und Lazio • Agenzia immobiliare per case e casali in Umbria, Toscana, Marche e Lazio