How to get a mortgage in Italy

Can foreign nationals get a mortgage in Italy even if they are not residents?

The short answer is yes. However, compared to foreign nationals resident in Italy, obtaining a mortgage in Italy is more complex for non-resident foreign nationals with an income from outside Italy.

There are fewer options when it comes to lenders who offer mortgages to non-residents in Italy, and receiving a negative response from lenders is not unusual.

It is crucial to follow the right procedures and seek advice from professionals. Providing a mortgage to non-resident foreign nationals differs from the domestic market. This is mainly because lenders put constraints on the level of mortgage borrowing. Usually, lenders will only offer mortgages of up to 60% of the property purchase price.

Lenders have to take a number of factors into consideration pursuant to the European Mortgage Credit Directive. These include the currency of your income and your age. Generally, the mortgagee should not exceed 75 – 78 years of age by the end of the mortgage term.

A lender will also take into account the level and the source of your income; whether you are self-employed or employed for example.

In addition, a lender will required proof of creditworthiness and that you have sufficient funds to make Italian mortgage instalment payments on top of any other mortgages and loans elsewhere.

What are the steps to getting a mortgage in Italy?

The first stage of the mortgage application procedure includes gathering documents. We would always recommend that you seek independent legal advice at this stage. Your lawyer will be able to advise you what documents you need, identify whether you qualify for a mortgage and how best to proceed with your application.

Usually, obtaining financial pre-approval from a mortgage lender takes 3 – 4 weeks in Italy. The second stage of the mortgage application involves due diligence requested by the lender. This will entail getting a legal report and a technical survey of the property you want to purchase. If technical and legal assessments are accepted by the lender, the mortgage application will progress to the lender’s final approval.

It is essential to highlight that the real estate you wish to buy with your mortgage must be habitable and in compliance with current Italian technical, energy performance and building regulations on the matter. In the event that finalising your Italian property purchase is contingent on obtaining a mortgage, it is vital that the property you wish to buy meets the stated requirements of habitability and technical regulations. You should also make sure that the preliminary contract reflects the fact that your purchase is subject to getting a mortgage.

Finally …

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice. We offer services in all the major fields of Italian law with particular expertise in real estate and inheritance matters. Get in touch.

You may also like to watch our info videos on the subject of Italian property law.