Obtaining a mortgage in Italy
for the purchase of a holiday home
is challenging but entirely feasible!

1. You can schedule a personalized video consultation (via Zoom) using our automatic appointment booking system. During this stage, you can request to speak to an advisor in your preferred language and schedule a slot, free of charge and without obligation. You will receive reliable information on the feasibility of the transaction.
2. Activation of your account. For security reasons, we do not require our clients to send emails with attached documents. If you are interested in proceeding, we will activate a personal account for you on our web platform designed for foreign clients. You can log in with your credentials and easily upload all the necessary documentation to process your mortgage. The process is guided, easy and extremely user-friendly.
3. We will provide you with pre-qualification feedback as soon as possible, identifying the bank best suited to your needs. We will be able to give you an idea, although not a definitive one, of the type of mortgage, the duration, the type of interest rate, and the amount of the installment and loan amount you could access. This last piece of information will be very important in guiding your search for a property.
4. If you are happy with the offer you receive, we can proceed with uploading your mortgage file to the bank. The process varies depending on the selected bank. It may require your physical presence in Italy, or we may proceed without the need for you to be here in person. However, it will still be necessary to produce a certified or sworn translation of the file in order to upload it to the bank. We will be able to guide and assist you throughout this stage.

5. The Italian banks require that a property has already been chosen. If you are still searching, we can help you find a property, negotiate, and prepare the offer to purchase. Our company offers real estate advisory and property finder services with the needed technical and legal expertise. The type of property, its legitimacy, and its commercial value are crucial for mortgage approval.
6. The mortgage application process at the bank involves two main parts. The first part is aimed at obtaining a financial pre-determination based on the applicant’s personal profile, income, financial commitments, and creditworthiness. The second part involves a due diligence activity on the property to be purchased. This due diligence is conducted by two professionals: an appraiser who assesses the commercial value and technical regularity of the property, and a Notary who verifies the sellers’ title, the history of ownership transfers, and the absence of any issues or encumbrances on the property. If both activities yield positive outcomes, a final approval will be issued, and a closing date can be scheduled.
7. A current account will be required. The current account needs to be opened, usually after the financial pre-determination and before the closing, timing varies by bank chosen.Throughout the entire process, you can rely on the support of a qualified and certified advisor. They have excellent proficiency and fluency in English and can assist you in completing the purchase in a simple and secure manner.

LTVs and Costs

The Italian banking system takes a uniform approach to foreign client purchases, financing up to a maximum of 50%—60% of the purchase price.

In the case of clients earning in US dollars, it is easier to reach 60% of the purchase price if the mortgage loan is granted in US dollars. In this case, the client benefits from avoiding the risk of USD/EUR exchange rate fluctuations. Clearly, when calculating the LTV, the bank must ensure that the appraisal validates a value equal to or greater than the agreed purchase price. If the appraised value is lower than the agreed price, 50%-60% refers to the lower of the purchase price and the appraised value. Conversely, even if you are getting a good deal and the appraised value is significantly higher than the agreed purchase price, the percentage financed would still relate to the purchase price. In some cases, especially/mainly for American citizens who also hold Italian citizenship, it is possible to obtain up to 70%.

The percentages mentioned above pertain to the purchase price and do not include closing costs such as taxes, Notary fees, Estate Agency fees, bank and brokerage costs, and language services. Therefore, a potential buyer must have 40% to 50% of the purchase price plus additional funds to cover the associated costs mentioned above. These costs can vary significantly based on several factors, including the features of the selected property. Generally, they range from 10% to 15% of the purchase price, with a lower percentage incidence for higher-priced properties. Having identified the property of interest and gathered some technical information, we will be able to quantify these expenses extremely precisely in any case.

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