How to Get a Mortgage in Italy: A Step-by-Step Guide
Buying property in Italy is an exciting journey, whether you’re moving there, looking for a second home, or making an investment. If you need a mortgage (mutuo), the process can seem a bit daunting, especially if you’re not familiar with the Italian banking system. This guide will walk you through everything you need to know, in a clear and simple way.
1. Understanding Mortgages in Italy
Mortgages in Italy come in different types, so it’s important to choose the right one based on your financial situation and long-term plans.
🏡 Fixed-rate mortgage – The interest rate stays the same for the entire loan term, making it a safer option if you prefer stability.
📉 Variable-rate mortgage – The interest rate fluctuates based on market trends, which can mean lower payments at times but also potential increases.
🔄 Mixed-rate mortgage – A combination of fixed and variable rates, usually starting as fixed and switching to variable after a few years.
💰 Interest-only mortgage – This is less common, but some banks allow you to pay only the interest initially, with the full amount due later.
2. Who Can Apply for a Mortgage in Italy?
Both residents and non-residents can apply for a mortgage, but the conditions vary:
✅ Italian residents – Usually get the best terms, with loans covering up to 80% of the property’s value.
✅ EU citizens & foreigners with Italian residency – Similar advantages to residents, as long as they have stable income in Italy.
✅ Non-residents – Can still get a mortgage, but banks are more cautious. Typically, they finance only 50%-60% of the property value, and interest rates may be slightly higher.
💡 Tip: Some Italian banks specialize in mortgages for foreigners, so it’s worth shopping around!
3. What You Need to Apply for a Mortgage
Italian banks require a set of documents to evaluate your mortgage application. Here’s what you’ll typically need:
📌 Valid ID – A passport or Italian ID card.
📌 Codice Fiscale (Italian Tax Code) – Essential for any financial transactions in Italy. You can get it from the Agenzia delle Entrate or your consulate.
📌 Proof of Income – Recent salary slips, an employment contract, or tax returns if you’re self-employed.
📌 Bank Statements – Usually from the last 3-6 months, to prove financial stability.
📌 Credit History – Some banks check your credit score, especially if you’re applying from abroad.
📌 Deposit – You’ll typically need at least 20%-50% of the property’s value, depending on your residency status.
📌 Property Documents – The seller must provide official paperwork confirming the property’s legal standing.
💡 Tip: Some banks might require life insurance as part of the mortgage agreement, so be prepared for that possibility.
4. How to Apply for a Mortgage
Once you’ve found the perfect home, here’s how the mortgage process works:
Step 1: Choose the Right Lender & Get Pre-Approval
🏦 Compare different banks or work with a mortgage broker who can help you find the best deal.
📋 Getting pre-approval (approvazione preventiva) gives you an idea of how much you can borrow before committing to a property.
Step 2: Submit Your Application
📑 Provide all the required documents, including proof of income, tax records, and details about the property.
🔎 The bank will analyze your financial situation to determine if you qualify.
Step 3: Property Valuation & Legal Checks
🏡 A surveyor (appointed by the bank) will inspect the property to confirm its value.
📝 The bank will check for any legal issues, such as outstanding debts or disputes on the property.
Step 4: Approval & Signing the Mortgage Contract
✅ Once approved, the bank will issue a binding offer, detailing the loan amount, interest rate, and repayment terms.
✍️ You will sign the final mortgage agreement in front of a notary (notaio), along with the property purchase deed.
Step 5: Funds Transfer & Final Steps
💰 The bank releases the loan amount—either directly to the seller or through an escrow process with the notary.
🏡 Congratulations! The property is officially yours, and the mortgage is now active.
5. Costs & Fees to Consider
In addition to your deposit and monthly payments, here are some extra costs to keep in mind:
💶 Bank fees – Usually 1%-2% of the loan amount.
📜 Notary fees – Typically 1%-2% of the property price.
🏛 Registration taxes & stamp duty – Costs vary based on the property type and whether you’re a resident.
🏡 Surveyor fees – Around €300-€500 for the property valuation.
💼 Mortgage broker fees – If you use a broker, they may charge a commission.
💡 Tip: Some banks offer special deals for first-time buyers, so ask about any promotions or fee reductions!
6. Tips for a Successful Mortgage Application
✔️ Show stable income – Banks prefer applicants with a steady job or a well-established business.
✔️ Improve your credit history – If possible, pay off any debts before applying.
✔️ Work with a local expert – A mortgage broker or real estate agent can help navigate the process, especially if you’re a foreign buyer.
✔️ Consider a higher deposit – Offering more upfront can improve your chances of approval and may secure better interest rates.