ITALIAN NON-RESIDENT MORTGAGES
Good news for overseas property buyers
Expanding of your Budget and power of purchase
Securing of a non-resident Italian mortgage to purchasing a property has always been considered in the past kind of complicated, if not virtually impossible.
The current historical situation might instead lead to a different scenario, and for the following reasons:
1) At the moment banks are “particularly liquid” (meaning with an over excess of liquidity/cash) and lately they seem to be more keen to open the doors to this “financial product” (non-resident mortgages for instance)
2) After the rise registered in the last quarter of the year 2022 and all 2023, Interest rates finally dropped, with this meaning that the economy is less fragile and the financial conditions more favorable for the home buyers
3) Inflation seems now to be under reasonable control
4) The growth of the real estate market is on hold
On the other hand – and if compared with the general conditions applied by the Northen American-British banks – the interest rate in Europe remains anyway more convenient.
Given all this and the structural need of the bank to allocate this excess of liquidity in a stable way, 2024 has been the year that marks a decisive inversion of the trend.
A brief overview:
Fon ron-residents, the maximum that an Italian bank would loan is equal to 50-60% LTV, typically with a minimum of euro 50.000
Only properties that are complying with urban-planning and cadastral regulations can be eligible for a mortgage.
The applicant needs to provide the banks with certified documents about the income and financial status Before placing an Offer to Purchase in for the property you wish to buy, it is advisable to get a financial pre-approval through a mortgage broker
Timing to secure a mortgage is typically 6-8 weeks from the moment that a preliminary agreement of the property has been signed by the Parties
The side costs of arranging a mortgage to be considered are:
a) Mortgage tax of 2% of the amount borrowed for second home buyers;
b) notary mortgage deed fee, usually ranging between €2500 – €3000;
c) Bank survey;
d) Property insurance;
e) Mortgage broker fee;
f) Proxy fee
At Clemente Law firm we can help you executing of the mortgage agreement (together with the sale&purchase one) everywhere in Italy and being appointed as your Proxy.
https://www.clementelawfirm.com/realestate/
