Here we reveal key Italian mortgage information by looking at the requirements for getting a mortgage on an Italian property, the types of products available and the costs involved.
Here are the basic facts of an Italian mortgage (Mutuo Ipotecario) :
Net Monthly Income |
€ 5,000 |
35%
of 5,000 net income |
€
1,750 |
Existing
Mortgage Repayments |
€ 500
|
Other
outgoings, loans etc. |
€ 600
|
Total
Outgoings |
€ 1,100 |
35%
of net income minus total outgoings |
€ 1,750 - € 1,100 = € 650 |
In this example, an Italian lender would consider a mortgage with repayments not exceeding €650 per month.
While the mortgage market in Italy has evolved and become far more flexible as compared to a decade ago, the level of competition between the lender is nowhere near that in the UK for example which results in far less availability of attractive rates.
There are two main types of Italian mortgages :
There are also two main ways to repay your Italian mortgage :
Which type of mortgage and which repayment method suits you will depend on your individual circumstances. And while almost all estate agents in Italy will be happy to put you in touch with a mortgage lender, you should probably consider using an independent mortgage broker to help you find the best deal.
Here is a breakdown of the typical setup costs for an Italian Mortgage :
This completes our Italian Mortgage Information section.
Liguria › How to Finance Investment Property › Italian Mortgage Information
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