Getting a mortgage in Italy

Getting a mortgage in Italy The mortgage market in Italy is generally quite conservative and banks have strict criteria for non-Italian individuals when it comes to offering finance to potential homebuyers.

Fortunately, there are still options available.

Read below to find out the best options for you.

Applying for a mortgage in Italy

For expats who don’t have the cash available to purchase a property in Italy (or prefer not to use it) and are seeking finance options, be aware of the qualification criteria stipulated by banks which are outlined below. Submitting a mortgage application correctly and choosing the most suitable bank are crucial steps to receiving beneficial economic conditions. It is also worth noting that Italian banks only accept documents which are translated into Italian, which is why you should use a trusted, English-speaking broker in addition to legal representation.

Who is eligible for an Italian mortgage?

Unlike the UK, Italian banks don’t offer interest-only mortgages to buyers, and loan repayments must be paid on time. Mortgages for foreign buyers are also only available for residential property use, which include the following:

Standard purchase
Renovation project
New building construction

You'll usually be required to open a bank account with the bank that is lending to you too.

General banking criteria

Max LTV/LTC: 60%
Max duration: 25 years
Max debt-to-income ratio: 30-35%
Max 75 years of age at the end of the mortgage
Good score on a credit report

Mortgage companies will not cover the costs of any reconstruction works, so if any is required you will need your own money to carry this out.

It's important to note that when applying for a mortgage in Italy, due to the recent pandemic and interest rates being so low, a lot of Italian banks are extremely busy and the process of being accepted for a mortgage is longer than in previous years. Therefore, it is a good idea to look into different banks and institutions when considering applying for a mortgage to have more options.

How long does the process take?

The entire process can take from four weeks up to two months and the mortgage broker assistance is granted for the whole duration of the operation, from the first consultancy up to the first mortgage payment.

For more information on qualifying criteria, interest rates and affordability, download a copy of our Italy Buying Guide