Question: What are the ideal parameters to get a mortgage in Italy as a non-Italian resident borrower?
Answer: If you are looking for an Italian mortgage and are not an Italian resident, here are the ideal parameters to increase your chances of success and get better conditions.
Ideal Italian Mortgage Parameters
- LTV (Loan To Value) not exceeding 60%-80% (50% for refinance)
- Standard Loan amount €50,000 to €1,000,000 (up to €2,000,000 for qualified high income earners)
- Luxury property loan amount over €2,000,000
- 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 older than 75
- Borrower’s discretionary income in home country higher than mortgage payment
- Mortgage to buy an Italian property is easier; refinancing options are possible subject to additional screening;
- 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 to a borrower who is not an Italian resident when the requirements above apply:
- Interest Rate: adjustable, currently 6.10%–6.80%
- Loan currency: EUR, USD, CAD, GBP, CHF, AUD
- No fees for partial/total early payments
- Mortgage Tax: 2% if to buy a holiday property or 0.25% to buy a home with FHTR
- Insurance cost: 1.25% of loan amount, as a onetime payment for entire loan duration
- Brokerage fee (does not apply if you contact the bank directly, without 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
For more information on the Italian mortgage process and possible options, book a consultation now with an experienced lawyer to review your situation and the specific applicable case circumstances before committing to the next steps.
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