We help you get a mortgage in Italy from abroad
Having found the perfect property in Italy, be it on the islands of Sardinia or Sicily or the beautiful wine regions of Tuscany, Puglia, Veneto or Abruzzo you might find yourself navigating a wide selection of banks that offer mortgages. However, not all banks in Italy finance non-resident applicants property purchases in the country, which probably will lead to plenty of wasted time researching options. But today you are in luck. Homevest can summarize your lender options and give you personal guidance when looking to finance your new home back home.
The basics of non-resident mortgages in Italy
- Deposit requirements range based on your nationality and currency you earn income in
- EU citizens need 30% saved as a deposit against the property value
- Applicants outside the EU tend to need a deposit between 40-50%
- Italian citizens living abroad might be eligible for a mortgage with a 20% deposit requirement
- Maximum repayment term for non-residents tends to be 20 years, but Italian expats might be eligible for up to 30 years
- Your monthly loan payments, including the new mortgage you are applying for and any existing loans, cannot exceed 40% of your monthly free cash flow (monthly income - monthly loan expenses). Some lenders might require an even more stringent debt-to-income ratio
- Italian lenders restrict lending to only habitable properties.
Special benefits for Italian citizens applying from abroad
- An easier application process
- Lesser scrutiny by lenders due to the close link to Italian territory
- Tax benefits, especially for first time buyers being eligible for the Prima Casa scheme.
Types of mortgages and interest rates in Italy
- Fixed, meaning that the interest rate is the same throughout the loan repayment
- Variable, meaning that the interest rate can fluctuate with changes in the Euribor reference rate
- Mixed, meaning a combination of the above, starting with fixed for a given amount of years after which the interest rate denomination converts to variable.
If by reading this post your dream of buying a home back in Italy seems a bit closer, please get in touch with our team to assess your personal situation and help you get started with the mortgage application process.