What are the steps to ask a mortage in Italy?
What are the steps to ask a mortage in Italy? Dont’ worry Tettamanti Re can give you the financial assistence you need.
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Here we’ll try to have an overview of all that you need to know, answering the most commun questions.
What are the steps to ask a mortage in Italy?
What papers do I need?
How much does it cost?
How much do I have to pay for interest rates?
And if you dont’ find everything you need, dont’ hesitate to contact Laura, our financial manager!!!
First of all : Paperwork required by an Italian bank
- Personal documents, such as a copies of your passports and your Italian Tax Code. If you dont’ have one we can help you to get at the Income Revenue Authority ( Agenzia delle Entrate). They can also require your personal Tax Code in your country
- All kinds of incomes you have. For example the salary if you’re an employee. Otherwise dividend payments or compensation directors if you’re self-employed or has an holding company
- Last three pay slips or the last six months personal bank statements
- Your Tax Return documents ( at least the two last)
- Some banks can ask a reference letter from your Bank, stating you are a good client
In addition to the documents that attest to your income capacity and therefore that you’re to be able to repay the requested loan, the bank asks also the documents referring to the property you are going to buy and on which a mortgage will be registered as a guarantee
They are:
- Copy of last title/provenance contract
- The Cadastral plans issued by Land Registry
- Building license and any other work had been performed on the property
- Copy of the preliminary agreement contract, showing the payment conditions and all the details of the deal.
It’s important to remember that all the documents must be in italian and certified through the Apostille certification.
Don’t worry!
You can go to your Consulate or use a specific licensed translators. Even if you can ask a Notary as well.
The second important question is: how much does it cost?
The second important question about “What are the steps to ask a mortage in Italy? ” is: how much does it cost?
- An external technician is required to estimate the value of the property. The average cost is between 400/1.000 euros, depending the work and the value of the property.
- In addition to the notary act for purchasing you have to add the notary act to write the mortage act. See our news ………
- A tax called Imposta Sostitutiva. This is withhold by the bank from the total of the loan granted. It’s the 0,25%of the total amount if the new home becomes your residency, or 2,00% for non-residents. The bank pays this to Income Revenue Authority (Agenzia delle Entrate) on behalf of clients
If you want to settle all your mortgage or part of it, you dont have to pay any more penalty.
Third is about the average interest rate.
Which one is better? Fixed, variable or mixed rate?
The third important question about “What are the steps to ask a mortage in Italy? ” is about the interest rate.
Nowadays, you can find really good loans in Italy.
Usually if you’re financing a maximum of 60/80 % of a house purchase, the fixed rate is around of 1,5 % and the variable rate around 0.90% ( april 2019 ).
If you want to see which bank are the best look at mutuionline.
Now the difference between fixed and variable is very small.
The fixed rate enables the security of a stable monthly installment for the whole duration of the loan.
The Variable rate is following the rate trends and the monthly amounts will have a tendency to increase and decrease.
Mixed rate, a combination of the two. gives you the possibility of switching from a fixed to a variable rate (or vice versa) according to preset contractual conditions.
If you have not learned enough about “What are the steps to ask a mortage in Italy?” contact us!
Read also the news “ How to buy a house in Italy“