Can You, Non Resident, Get a Mortgage for Your Home in Italy? YES, You can!
This is one of the most frequently asked questions by those of you looking to buy a house in the bel paese. As a matter of fact, the mortgage market in Italy is generally quite conservative and banks have strict criteria when it comes to offering finance to potential home buyers having residence and income abroad. However, there are options available.
1. What are the main acceptance criteria for a non-resident client applying for a mortgage?
• Max LTV/LTC: 60% − they will lend you up to 60% of the property value/cost
• Max duration: 25 years
• Max debt-to-income ratio: 30-35%
• Habitable property having all the necessary building permits and authorizations.
2. How long does the process take before getting a mortgage? It can take from one to two months. More in case of a not-fully compliant property.
3. Is a mortgage application easier for a main dwelling compared to a second/holiday home? Actually there are no technical differences or greater complexities. Fiscal benefits are often requested by Italians resident abroad, who are entitled to buy a property as a main dwelling, with no need to transfer their residence in Italy.
4. Are there any advantages for Italians living abroad and buying a property in their home Country? Italian citizens living abroad enrolled at the AIRE (Registry of Italians having their residence abroad) and who do not own another property in Italy can buy a house in their Country asking for the fiscal benefits linked to the purchase of the “Prima Casa” (main dwelling), without moving their residence to Italy permanently. This opportunity allows them to pay lower taxes both for the purchase and for the mortgage.
5. Are interest rates convenient in Italy in this moment? Generally speaking, interest rates have been very low during the last years in Italy. Fixed interest rates (fixed for the whole mortgage duration) are often preferred by our clients, but also floating rates give the opportunity to finalize big deals in this historical period. For several clients, the financial returns and the good quality of interest rates in Italy, compared to those available in their Home Country, make the possibility of getting a mortgage in Italy a favorable opportunity.