If you're one to spend a lot of time in Italy, you ought to buy a property here. Be it an apartment in Rome
or a villa in Lake Como, it'll be easier if you have a place you can call your own in the country. The bad news, or rather, the harsh reality of it is that it's bound to be expensive. Expect it to cost around thousands, if not millions of Euros. But the good news is that you can always get a mortgage to help pay for your new home. The process isn't all that complicated!
Can You Get a Mortgage in Italy as a Foreigner?
First things first, you're probably wondering if you can actually get a mortgage in Italy as a foreigner, aren't you? Well, wonder no more because you can, in fact, get it! As of this writing, there are no instituted laws and other legal issues that prohibit non-residents from taking out mortgage loans. In fact, non-residents can even buy property in Italy despite their residency status. All you need is to get a local bank account in Italy
. Most financial institutions won't lend you any loan if you don't have at least that.
What are The Different Types of Mortgages in Italy?
Now that you know that you can get mortgage in Italy even as a non-resident, it's high time you know the different types of mortgages here. Unlike in other counties, where there are four, six, or more, Italy only offers two types of mortgage loans: the fixed-rate mortgage and variable-rate mortgage. The fixed-rate mortgage is what most people go for since it's less risky and you'll already know how much you owe per month. The variable-rate mortgage, on the other hand, lets you take advantage of low mortgage rates. However, it's a lot riskier and can easily drain your finances if you're not careful.
What Documents Do You Need to Show?
As with any other process, taking out a mortgage loan requires you to submit a few important documents. They include valid IDs, such as valid passports, with copies, your signed pre-sales agreement, proof of income, your latest credit report, and proof of address. For your proof of income, any proof of employment (employment contract, company ID, etc.) can do. You can also include your most recent tax certificates or payslips if you're a freelancer. As for your proof of address, lease contracts, utility bills, and even deeds to other properties (especially the one you're living on) will do.
What are The Stages of Getting a Mortgage in Italy?
According to Idealista
, one of the top property portals in Italy
, the process of getting a mortgage in Italy is made up of three stages. The first stage is when the application, wherein you go to a bank, submit the needed requirements, and they'll determine whether or not you're worthy of the mortgage loan. After that, the bank will have your property evaluated to see if it, too, is mortgageable. And if it is, then the bank will give you the final terms of your mortgage loan and let your sign the contract.
Getting a mortgage in Italy may seem intimidating, but it's really not! As long as you have the important documents, know the procedure, and do everything step by step, you'll get your hands on your new property in Italy in no time!