What are the ideal parameters to get a mortgage in Italy as a non-Italian resident?

If you are looking for an Italian mortgage and are not an Italian resident, here are the ideal parameters to increase your success chances and get better conditions:

Ideal Italian Mortgage Parameters

• LTV (Loan To Value) not exceeding 60%
• Standard Loan amount €50,000 to €1,000,000
• Luxury property Loan amount over €1,000,000
• Duration 15 to 20 years
• Borrower’s country of residency EU, USA, Canada, UK, Switzerland, Australia
• Borrower’s age at the end of payment plan not over 75 years
• Borrower’s discretionary income in home country higher than mortgage payment
• Mortgage to buy an Italian property (as opposed to a Home Equity Line of Credit or to do renovation work)
• Visit the mortgage bank in person to file the application after successful pre-approval.

Italian Mortgage Standard Terms and Conditions

Here is a sample of conventional terms and conditions applicable when the requirements above apply:

• Interest Rate: adjustable, currently 2.725%
• Loan currency: EUR, USD, CAD, GBP, CHF, AUD
• For a non-EUR loan, one time currency exchange fee: 0.20% of loan amount
• No fees for partial/total early payments
• Mortgage Tax: 2% if to buy a holiday property or 0.25% to buy a primary residence or for dual citizens
• Insurance cost: 1.25% of loan amount, as a onetime payment for entire loan duration
• Brokerage fee (only if you use a broker): 1.40% to 2% of loan amount
• Appraisal: €350 to €600
• Bank processing fees: 0.50% to 1%

Italian Mortgage Pre-Approval Requirements

Here is what an Italian bank usually requires to start the mortgage pre-approval process:

• Home country tax return
• Home country credit report
• Italian tax code (codice fiscale)
• Home Tax Identification Number (for example, SSN for US citizens)
• Passport
• List of current Debts/Loans
• Proof of funds for down payment

Learn more about Italian mortgage process and possible options

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