How to get a mortgage in Italy
Can foreign nationals get a mortgage in Italy even if they are not resident?
The short answer is yes. However, compared to foreign nationals who are resident in Italy, it is a more complex process for non-resident foreign nationals whose income is generated 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 professional experts. Providing a mortgage to non-resident foreign nationals mainly differs from the domestic market because the level of mortgage borrowing is more constrained – usually mortgages of up to 60% of the purchase price will be offered.
There are a number of elements that will be taken into consideration by lenders pursuant to the European Mortgage Credit Directive. These include the currency of your income and age. Generally, the mortgagee should not exceed 75 – 78 years of age at the end of the mortgage term. The level and source of your income will also be taken in to account; whether you are self-employed or employed for example. You will also be required to provide proof of creditworthiness and that you have sufficient funds to make Italian mortgage instalment payments in addition to your existing mortgages and loans elsewhere.
How can foreign nationals get 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, and will be able to 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. The second stage of the mortgage application follows proper due diligence requested by the lender. This will entail getting a legal report and a technical survey. 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.
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.