How to get a mortgages in Italy: terms, rates, application documents — Tranio

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In Italy, mortgages are granted for pending constructions, existing property and renovations. Banks impose more stringent requirements on foreign citizens regarding the assessment of the mortgaged property. Therefore, foreign nationals are more likely to be granted a mortgage on high-end, liquid property.

In Italy, like in the other countries of the EU, taking out a mortgage loan is beneficial thanks to the low ECB rate having slid into negative value in 2016.

Maximum LTV ratio	60% (for residents: 80%)
Minimum loan amount	€40,000-50,000
Average fixed mortgage rate, %	3.5% per annum
Average floating mortgage rate, %	2.9% + the ECB rate
Loan term	From 5 to 20 years
Minimum age of borrower	23-25
Maximum age of borrowerby the end of the loan term	80-85
Maximum percentageof monthly income for mortgage	35%

Property for sale in Italy 1,710 listings on Tranio

5,000,000 €

Luxurious historic villa with a park on the shores of Lake Maggiore in Belgirate, Piedmont, Italy

14 bedrooms

1,600,000 €

Renovated historic apartment with a large terrace, Ortiga, Sicily, Italy

Total area 223 m² 4 bedrooms

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Charming villa with pool and sea views in Andora, Savona, Liguria, Italy

Total area 690 m² Land area: 2,500 m²

695,000 €

Two-storey villa on the first line from the sea in Anzio, Lazio, Italy

Total area 200 m² Land area: 700 m²

2,200,000 €

Luxurious duplex apartment just 200 m from Piazza Navona, Rome, Lazio, Italy

Total area 220 m² 3 bedrooms

1,650,000 €

Beautiful turnkey apartment next to the Villa Borghese park, Rome, Italy

Total area 160 m² 2 bedrooms

1,250,000 €

Comfortable villa with a private garden, a swimming pool, a garage, a terrace and a Lake view, Lenno, Italy

Total area 250 m² 3 bedrooms

830,000 €

Traditional villa with large plot in Foiano della Chiana, Tuscany, Italy

Total area 375 m² Land area: 5,000 m²

Documents

Prospective lendees submit the following documents to Italian banks:

ID, passport copy and proof of residence
tax identification number (codice fiscale) issued by the questura (the state police), which has local headquarters in each province of Italy
legal entity registration documents and auditors' reports on the company’s financial statements (for business owners)
pay slips from permanent employment for the previous year (for the employed)
bank statements from foreign banks confirming regular cash inflow
preliminary property sale contract
estimation of costs (for property renovation mortgages).

Banks may also require a family composition certificate, marriage or divorce certificates, a birth certificate and a driver’s license. Mortgage lendees in Italy are not required to possess residence permits in the country.

All the documents must be translated into Italian and notarised. This can be done via a consulate of Italy.

Loan applications usually take 2-4 weeks for approval.

Additional costs

Non-recurring mortgage costs in Italy total €270-550. There is also a fee of 0.25-2%. Additional property insurance payments range between €150 and €500.

Property appraisaland Due Diligence	€270-300 or €500-550for a property valuedat more than €1M
Compulsory property insurance	€150−500 per annum
Borrower's lifeinsurance (optional)	€3,000-5,000
Mortgage arrangement fee	0.25% with tax benefitsand 2% without them
Early repayment penalty	—

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