Mortgage loan for foreigners in Italy - how to get it?
21 April 2015
A foreigner can easily get a mortgage loan in Italy like an Italian as the terms and conditions for both are the same. He should make just two steps:
1) Turn to a reliable real estate agency specializing in real estate deals in Italy
2) Provide this agency with documents that confirm your identity, solvency and also with the information about an object you are going to buy. All these documents will be translated into Italian and English and given to a bank. It will take the bank 15-40 days to fulfill the procedure of documents checking, validation, registration and signing. After mortgage approval its type and terms of payment should be determined. Afterward a contract should be drawn up and you get your loan.
What should you know before you get mortgage loan in Italy
There is a group of banks in Italy that give mortgage to foreigners willingly if they are sure that a customer is ready to pay properly. In such a case they can provide you with a loan to buy a new real estate, to modernize or maintain old property or to build a new one.
The loan size of such can be up to 65% of property value based on the results of technical expertise, initiated by the bank. You should pay back the loan during 5-20 years, and the terms of advanced repayment should be stipulated in the contract.
Italian mortgage loan can be of three types:
- with a constant rate for the entire term of the loan;
- with a variable (floating) rate;
- with a combined rate (during the first part of the term a fixed rate is used, during the second part a floating rate is used).
The first part of the loan period may be 2, 3 or 5 years, after which a borrower has the right to change the interest rate.
Payments consist of a part of the capital of the loan and a part of the interest for its use. The borrower is obliged to make the payment every month or every three months or every six months, which is stipulated in the contract.
The final stage of a mortgage obtaining in Italy
So, the mortgage is approved. A debtor or his trustee has to enter into a contract with the bank, giving it a notarized encumbrance for the acquired property. According to the experience of our agency LAR Immobili that has been working for many years in Milan, the customer gets the entire mortgage loan in the day of signing the contract.