At De Tullio Law Firm, we specialise in Italian property law.
Our clients often ask if foreign nationals can get a mortgage in Italy to purchase a property. In this article, we explore the Italian Mortgage process.
In principle, non-Italian nationals can obtain a mortgage in Italy. However, in recent years, bank policies on lending to non-Italians have changed.
Our advice is to shop around the banks to see who will lend to you. You should also check how much you can borrow based on the value of the property you are looking at buying.
Do your homework. Look carefully at repayment terms and conditions and also consider currency exchange implications. Some banks may offer mortgages to non-Italian nationals either in Euros or USD.
In addition, you should factor in associated costs. This could include mortgage application fees, broker’s fees, mortgage tax, property valuation / surveyor’s fees, notary’s fees, insurance and, translation fees. If you do not speak Italian, by law, you will need a translator.
The whole process, from mortgage application to the release of funds should take between eight to twelve weeks.
The Italian Mortgage process for foreign nationals
You will need to prove you are financially solvent in accordance with the mortgage provider’s procedures. Once complete, you can submit your application for the mortgage.
Thereafter, the mortgage provider will conduct a property compliance check. This involves the mortgage provider’s surveyor inspecting the property and submitting a survey report to the mortgage provider.
Assuming the surveyor’s report meets the mortgage provider’s requirements, you will need to appoint a notary to carry out title deed checks. Once the relevant checks have been performed, the notary will submit a report detailing the findings to the mortgage provider. If the mortgage provider is satisfied with the notary’s report, you should then receive final mortgage approval.
Funds will be released on or around the date that you, the mortgage provider and the vendor have agreed as the sale completion date. You will need to sign the deed of sale for the property and your mortgage agreement at the same time, in front of a notary. The vendor will receive the funds as a cashier’s cheque at the same time as the sale completion, or within a matter of days – as soon as the title has been transferred to the Land Registry.
It is worth noting that if the current owner of the property already has a mortgage and, if after looking into it carefully, the terms and conditions of the existing mortgage satisfy you, it might be interesting to take over that mortgage as it could potentially save you some costs and or fees. Our advice however would be to seek independent legal advice before committing yourself.