Can a non Italian resident get an Italian mortgage?
To get an Italian mortgage, non-Italian residents need to follow a procedure that’s become stricter after the 2007/2008 global financial crisis. Here’s some general information that might be useful if you’re looking for a financial solution to buy or refurbish an Italian property; anyway, the specific conditions are always to be verified with the bank.
How to get an Italian mortgage
To obtain a mortgage from an Italian bank, you need to go through the following steps:
1) Personal solvency check: the bank will review your financial and property information
2) Pre-approval mortgage application: you will need to file and submit the documents requested by the bank, which will be subsequently be evaluated
3) Property compliance check: a surveyor (appraiser) appointed by the will inspect the property and issue a compliance and evaluation report for the bank
4) Title check: a notary appointed by the borrower will review the property title and issue a title check report for the bank;
5) Final Mortgage Approval: if the notary check of your personal solvency situation, property compliance and title is successful, the bank will issue a formal mortgage approval
6) Funds release: After the approval, the bank and the borrower agree on a date to sign the contract. If the mortgage loan is asked for a purchase, the purchase contract and the mortgage contract are signed at the same time, in front of the same notary. The mortgage funds may be released at signing or upon confirmation (from the notary) of title transfer registration in the Public Land Register (Register of Deeds), depending on the policy of the bank.
Since the whole process might take some months, we suggest you obtain a mortgage pre-approval before you commit to purchasing the property.
The chances of mortgage approval, the amount of the loan, the timing and the cost depend on different factors, such as:
> the nationality and domicile of the applicant
> the personal employment and financial status
> the property conditions.
Seen the complexity of the process, a mortgage broker can help you select the bank that suits your specific situation and needs.
Additional costs of Italian mortgages
An Italian mortgage brings a set of accessory costs, such as:
– mortgage application fee
– broker fee
– mortgage taxes
– notary fees
– home insurance
– interpreter fees (if the borrower does not speak Italian).
Make sure you include them in your budget before planning to apply.
Let us know if we can help.
Our firm has proven, long-time expertise in international civil law and real estate matters.
If you need legal assistance with buying property in Italy, contact us: our English and French-speaking lawyers will be happy to assist you.