Italy REAL ESTATE MORTGAGE LOANS BANKS
Italy REAL ESTATE MORTGAGE LOANS BANKS
The mortgage in Italy: typical procedure
THE MORTGAGE
Choose the real estate.
Learn, you can count on what sum, having filled our form of inquiry of calculation.
Being in Italy, sign the contract on sale (Compromesso) and make transfer of the sum of the deposit for property maintenance.
The creditor gives the preliminary hypothecary offer which is subject to changes according to estimation of cost of the real estate, and the notarial report (confirming that the real estate is free from debts).
The creditor disposes about estimation of cost.
Open the bill in the Italian bank and give the information on tax number (Codice fiscale) to the creditor.
Be defined with monthly payments under the mortgage.
End.
The notary registers the hypothecary certificate (it occupies 2-5 days). After check in the notary passes hypothecary means beneficiary.
POSSIBILITY OF RECEPTION OF THE CREDIT AND NECESSARY CRITERIA
All hypothecary credits are given in euro and are provided with your Italian property. The mortgage has the full status, and for its reception it is required to give acknowledgement of the income and constant expenses.
The greatest possible sum of a loan makes from 60 to 70 % from the purchase sum, minus the commission and other gathering. The minimum sum of a loan (50.000) is usually defined.
The Italian creditors estimate possibility of reception of the credit the applicant on ability of the applicant to pay the loan sum. As a reference point: your current monthly expenses and payments under the mortgage on the Italian real estate should not exceed 35 % from your general monthly income. Percent on rent and investment incomes also can be taken into consideration. Payments under the mortgage, a rent, payments under credits to private persons and ΰλθμενςνϋε obligations are considered as expenses.
MORTGAGE TYPES
The mortgage can be received for acquisition of the under construction or already existing real estate. Financing of purchase of several objects of the inhabited real estate in the large size is considered in an individual order. The property should be registered in a ground cadastre as premises. Please, keep in mind that local authorities establish criteria for definition of premises and if the real estate has not received such certificate, hypothecary financing cannot be received.
In case of loans on repair and building, it is necessary to give the budget documentation at a filing of application, by the same moment clients should receive all necessary permissions. In case of loans on building, more detailed information is required. Means will be given by the creditor after giving invoices.
The real estate should be classified as inhabited before the creditor will consider the statement on granting of the credit for repair.
MORTGAGE KINDS
There are various kinds of the mortgage, from the mortgage with payment only percent to the repayable mortgage on the basis of the changeable either fixed interest rate, or their combination. Terms can vary from 5 till 40 years. However loans should be paid before achievement of 85-year-old age. The interest rate makes an order of 4-5 % annual.
Documents which it is necessary to give to the creditor:
The identification card and residence acknowledgement.
Acknowledgement of the income and expenses.
Extract from the bank bill.
The information on the real estate.
TERMS
Initial approval can be received from the creditor after the demanded documentation is given. It occupies approximately 2 weeks.
From the moment of a filing of application before process end can pass from 6 weeks (minimum).
LIFE INSURANCE
Life insurance rather is recommended, though is not obligatory.
INSURANCE OF BUILDINGS
Under the insisting of the creditor you get an insurance covering at the insurance company chosen by it. However this insurance covers only base requirements. For fuller covering it is required to get the additional insurance.
BANK BILL
Before end of procedure you will need to open the bill in the Italian bank.
TRANSACTION END
Hypothecary means are passed by the creditor to your notary for end of procedure of purchase.
EXPENSES FOR MORTGAGE RECEPTION IN ITALY
The bank commission for the credit organisation: usually from 0,4 %-0,7 % from the credit sum (it is subtracted from the credit sum).
Bank expenses for procedure end: usually 100160 (it is subtracted from the credit sum).
Expenses on estimation procedure nearby 200250, it is paid directly to the appraiser.
Pay attention: some creditors raise the annual commission.
The fee to the notary by your inquiry your notary can give you a detailed apportion under the fee. If you take the hypothecary credit in Italy, it is necessary to pay to the notary an extra fee for check in of the hypothecary certificate in a ground cadastre (about 1 %-1,5 % from the credit sum).
The tax to mortgage check in (it is subtracted from the credit sum).
If this basic residence (for residents) 0,25 % from the credit sum.
If it is the second property (for non-residents) 2 % from the credit sum.
Insurance of buildings becomes single payment in maintenance of a base insurance covering on duration of term of the mortgage (it is subtracted from the credit sum).