Jos Deuling,  Saturday, 13 April 2013

 

This article is part of a series of 8 articles about buying property in Italy. The other articles in the series cover the following topics:

Property Buying Guide
Italian regions with cheap houses and apartments
Finding a Good Estate Agent and their Role
Buying Process
Documents needed
Costs
Taxes and Charges

A Mortgage in Italy: advice & tips

Italian banks are cautious in providing mortgages to people who do not live in Italy. As a non-resident, it’s hard to get a mortgage for a renovation object or for a house somewhere in the remote countryside. In case of a renovation object, you can better buy first and then apply for a mortgage for the renovation.

You need a mortgage (un mutuo) if you want to buy, build or renovate a house. You borrow money from the bank using the property as collateral. If you can not repay the mortgage, the bank repossesses your house. Most financial institutions can tailor a mortgage, including related insurances. By bank rules and possibilities may differ. Small banks e.g. only offer mortgages, no insurances. In Italy, each bank may provide mortgages, but only under strict rules to counter Usury. If you want information about mortgage offers from different banks, you can visit the mortgage comparison website . Although the site is in Italian, you can compare up to 30 different banks. Highly recommended.

Banks need approximately one month to process your mortgage application. After approval, you have to register the mortgage officially through a notary. Together with a representative of the bank you will be invited to sign the mortgage at the office of the notary. The notary will take care of the registration of the mortgage at the Land Registry. You need to make the appointment with the notary well in advance. If you can't be present at the signing of the mortgage, you can authorize someone on your behalf to sign it. In Italian, this is called una delega of procura speciale. The bank pays the notary fees.


What documents do you need in a mortgage application?

Concerning the property

1. photo (if available) and a description of the property
2. copy of the agreement for sale (proposta d’acquisto of compromesso)
3. copy of the previous sales contract of the property
4. copy of the layout of the house (schede catastali en visure catastali) as issued by the Land Registry
5. copy of the building permit (permesso a costruire / concessione edilizia / DIA) (if applicable)
6. document with a list of the planned activities (in the case of a mortgage for a renovation)

General

1. copy of your passport
2. copy of your Tax Code (similar to the social security number in th US or the National
3. Insurance
number in the UK). The Tax Code is issued by the Italian Ministry of Finance

Income

1. bank statements for the last 6 months
2. bank account where your salary / dividend is paid
3. evidence of savings (savings accounts, stocks, pension plans)

Self employed or employed by a LLC (Limited liability company or Società a responsabilità limitata)

1. copy income statement
2. salary slips of the last 2 months
3. statement of the accountant with a confirmation of salary and dividends (in the case of a LLC)

Debts (if applicable)

1. copy of the bank statements for the last 2 months with the proof of payment of the mortgage on your principal residence.
2. statement of all your current obligations according to page 1 of the form Domanda di Mutuo.