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.
Written by Nicholas Vinberg
Published at 2022-11-10T15:55:06Z
Last updated at 2023-07-25T23:36:33Z
Readtime 4 minutes
We get it, who would not want to own a house in Italy and enjoy the beautiful coasts and scenic mountains, or a centrally located apartment in Rome, Milan or any other city filled with history and Mediterranean ambience.
Read on to learn more about mortgages in Italy for applicants from abroad looking to access financing with a foreign income, and special benefits Italian citizens abroad might be eligible for. You can also directly reach out to the Homevest team to inquire about a mortgage in Italy.
The basics of non-resident mortgages in Italy
When accessing property financing from an Italian lender, you should be aware that the mortgage can be denominated in either euro (the most usual), but also other currencies such as the US dollar.
Other criteria state that:
- 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
In addition to the possibility to be eligible for lower deposit requirements and longer repayment terms, Italian citizens living abroad can access other special benefits.
By being part of the registry of Italians residing abroad (AIRE) you might be eligible for beneficial treatment, including:
- 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
Italian mortgages are almost without exception offered on a principal + interest repayment basis, which means that interest only loans are not available and you should expect to have to start paying of the principal immediately to the bank.
When choosing a mortgage, you might be able to choose any of the following interest rate types, depending on your chosen lender:
- 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.
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