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Mortgages for non-Italian nationals

101I am often asked about the possibility of non-Italian nationals getting a mortgage to purchase an Italian property. I thought it might be interesting to explore the subject in this blog post.

In principle, non-Italian nationals can obtain a mortgage in Italy although in recent years, bank policies on lending to non-Italians have been tightened.

My advice is to shop around the banks to see who will lend to you and 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 – including but not limited to: 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, a translator will be required.

The whole process, from mortgage application to the release of funds should take between eight to twelve weeks.

Prior to applying for a mortgage you will need to prove you are financially solvent in accordance with the mortgage provider’s procedures. Once that is done, you can submit your application for the mortgage.

Thereafter, the mortgage provider will conduct a property compliance check, which 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. Funds will be released to the vendor in the form of 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.

As a final remark, if the current owner of the property already has a mortgage and if, after looking in to it carefully, you are satisfied with the terms and conditions of the existing mortgage, it might be interesting to take over that mortgage as it could potentially save you some costs and or fees. My advice however would be to seek independent legal advice before committing yourself.

If you need any advice or support on mortgage matters, please don’t hesitate to contact us.

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