By Nick M. Metta, Italian Immigration Lawyer
What are the ideal parameters to get a mortgage in Italy as a non-Italian resident?
If you are looking for an Italian mortgage and are not an Italian resident, here are the ideal parameters to increase your success chances and get better conditions:
Ideal Italian Mortgage Parameters
- LTV (Loan To Value) not exceeding 60%
- Standard Loan amount €50,000 to €1,000,000
- Luxury property Loan amount over €1,000,000
- Duration 15 to 20 years
- Borrower’s country of residency EU, USA, Canada, UK, Switzerland, Australia
- Borrower’s age at the end of payment plan not over 75 years
- Borrower’s discretionary income in home country higher than mortgage payment
- Mortgage to buy an Italian property (as opposed to a Home Equity Line of Credit or to do renovation work)
- Visit the mortgage bank in person to file the application after successful pre-approval.
Italian Mortgage Standard Terms and Conditions
Here is a sample of conventional terms and conditions applicable when the requirements above apply:
- Interest Rate: adjustable, currently 2.725%
- Loan currency: EUR, USD, CAD, GBP, CHF, AUD
- For a non-EUR loan, one time currency exchange fee: 0.20% of loan amount
- No fees for partial/total early payments
- Mortgage Tax: 2% if to buy a holiday property or 0.25% to buy a primary residence or for dual citizens
- Insurance cost: 1.25% of loan amount, as a onetime payment for entire loan duration
- Brokerage fee (only if you use a broker): 1.40% to 2% of loan amount
- Appraisal: €350 to €600
- Bank processing fees: 0.50% to 1%
Italian Mortgage Pre-Approval Requirements
Here is what an Italian bank usually requires to start the mortgage pre-approval process:
- Home country tax return
- Home country credit report
- Italian tax code (codice fiscale)
- Home Tax Identification Number (for example, SSN for US citizens)
- Passport
- List of current Debts/Loans
- Proof of funds for down payment
Learn more about Italian mortgage process and possible options
Studio Legale Metta is an internationally recognized boutique Italian law firm with experienced lawyers who handle domestic and international legal matters on behalf of private individuals, corporations and public institutions.
Connect with Nick to explore immigration to Italy and vital matters which come with immigration.
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