FAQ: Frequently asked questions about mortgages in Rome

We live in uncertain times, but life goes on and now could be a good time to buy a house at a good price.

Property price and price per square meter when buying a house

If we are looking to buy a house in Rome but need to apply for a mortgage, one of the first questions we must ask ourselves is how much we can borrow from the bank.

Differences between mortgage and personal loan

Home loan and repayment

The variety of mortgage products available in Rome could be overwhelming to those unfamiliar with mortgages. The two main types of mortgages in Italy are fixed and variable rate mortgages. There are also a few types of mortgages for different circumstances. Here is a brief overview of the two main types of mortgages in Italy:

Rome and its province has one of the largest mortgage markets in Italy, with a current value of around 2 billion euros, Rome ranks fourth among the most attractive. Home ownership is more popular in Rome than in many countries across Europe. While it has declined among younger age groups in recent years, buying a home in Rome and getting a mortgage remains something many young families plan. There are different types of mortgages in Rome available through banks and building societies. Most last around 25 years, although they can be even longer.

There are no legal restrictions for adults getting a mortgage in Rome. Even foreigners can take out mortgages in Rome, residents or non-residents, although the exact terms vary according to the individual lenders. Each bank or financial company will have its own requirements, but in general the main factors that are taken into consideration are:

The average price of a house in Rome has remained quite high and is currently around 3,064 euros per sq m.

You can apply for a loan directly from a bank. Alternatively, you can use a credit broker who can compare different mortgages in Rome. Before applying for a mortgage, check with credit reporting bureaus and ask for a free credit report to make sure there are no reporting errors. It is therefore a good idea to talk to a few financial advisors to help you choose the right mortgage option. These can include advisers within banks, or you can speak to an independent financial adviser or mortgage broker.

Foreigners, both resident and non-resident, can legally buy a house, an apartment and obtain a mortgage in Rome and its province. However, for non-residents and non-EU citizens, the mortgage procedure can be a little more complicated. It is much easier to get a mortgage in Rome as a foreigner if:

A 100% mortgage covers the entire purchase price of a new home, allowing you to purchase a property without using a deposit. In general, in fact, when we ask the bank for a loan, the loan covers only about 80% of the value; it is therefore necessary to be able to advance the 20% autonomously, in addition to the expenses. However, there are some banks that finance 100% of the mortgage.

A 100% mortgage works in much the same way as any other type of repayment mortgage, so you'll need to make monthly repayments, with interest, over the life of your mortgage. Lenders tend to charge higher interest rates for 100% mortgages than traditional mortgages because there is a greater risk that they could lose money if you are unable to pay off the mortgage.

We must point out that banks in Rome generally issue loans for an amount between 50% and 80% of the real estate value, emphasizing that the same value does not refer to the purchase price, but rather to the appraisal carried out by an expert. If, for example, a house costs 100,000 and the appraiser values it at 80,000, it will be on this last threshold that the bank will grant a maximum of 80% of the capital loan, and the debtor will have to finance the remaining 20%, for example, with a surety. This is because the regulations governing the disbursement of land loans have set the maximum limit at 80% of the value of the property.

A guarantor is someone willing to support your mortgage or loan application, who will step in and pay for you if you can't.

The main advantage given by a 100% mortgage is that you can buy a house with practically no liquidity. However, there are also a number of drawbacks; for example, the interest rates applied are higher than for traditional mortgages, since it is a riskier loan for the lender. For the same reason, the required guarantees will be more stringent.

Many banks in Rome offer 100% mortgages to young customers under 40 as a first home loan. Mortgages are specifically offered for young people with concessions and incentives for the purchase or renovation of a first home.

Getting a 100 percent mortgage is not very simple, for the reasons described above, if you want to buy a house without money, you can consider some alternatives:

If you can't get a 100% mortgage, or if you decide it's not a good fit for you, saving a deposit can greatly expand your mortgage options. One deposit could pave the way for you to get a 95% mortgage.

How much you'll need to borrow for an 80% mortgage will depend on the value of the property you want to buy. For example, if you want to buy a property worth €250,000, you will need to be able to borrow €200,000. Whether you can borrow this amount will depend on how much you earn and what financial commitments you already have.

Yes, you can use a mortgage broker who will be able to help you find the right mortgage for you. You can also read our mortgage guides for more information before applying.

No, but the better your credit score, the more likely you are to be accepted for a mortgage. If your credit score is low, it is still possible to get a mortgage, but it will be more difficult and the interest rates will be higher.

Better mortgage rates than someone with no deposit, with a 5% or 10% deposit. Smaller monthly repayments A wider selection of mortgage offers to compare

Saving a 20% deposit can take a long time A higher interest rate than someone with a larger deposit More of your savings will be tied up in your home

To qualify in Rome, as in all of Italy for an 80% mortgage you will need to meet your bank's lending criteria. This can vary from case to case, but overall, you'll need a good credit score and be able to demonstrate that you can afford the monthly repayments.

Tell us about yourself and one of our consultants will check the suitability and affordability of your mortgage. We'll show you your mortgage options based on what you've told us. Prepare and submit your mortgage application and get support every step of the way .

The cost of buying a first home does not end with the mortgage to be taken out for the purchase but we must consider the costs of taxes, appraisals, notaries, which are calculated in different percentages on the different amount of the loan requested. Many of these costs are reduced when the purchase concerns a first home by young people under 36. Let's see, therefore, what are the costs in Rome to buy a first home between taxes, costs and mortgage.

The law in Italy provides for the deductibility of interest expense and expenses deriving from mortgage loan contracts stipulated for the purchase, construction or building renovation of the main residence.

A common question for all of us when applying for a mortgage, for example a first home mortgage, and it's always the same: is the fixed rate or the variable rate better? There is no a priori choice that is better than the other, there is only one general rule to follow.

A "second mortgage" is used when a borrower who owns a property takes out another mortgage to buy a second home. This should not be confused with second mortgages, which are second mortgages secured against a property you already own.

This will depend on a number of factors. You may have passed the eligibility criteria for your existing mortgage with no problems, but banks in Rome tend to be much stricter when evaluating second home applications.

A natural person who obtains a loan for the purchase, construction or renovation of a second home must pay a tax equal to 2% of the loan.

If you are looking for a mortgage on a second home, you should expect the bank to consider the following factors when assessing your suitability:

The easiest way to ensure you get the best rates on your second home loan is to have access to every lender on the market. In this way, all the most advantageous offers for which you are entitled will be available to you.

Talking to the right mortgage broker can potentially help you save time and money when it comes to getting a mortgage on a second home, and this is something we can help you with.

A second mortgage on your existing home is not the same as a second home loan to purchase another property, nor is it the same as a mortgage. It is what is known as a home loan or second mortgage. They are loans secured against a property you own under a second charge and effectively function like a second mortgage.

We often hear the question "how easy is it to get a mortgage on a second home?" and the answer will depend on your profile as a borrower and if the banks in Rome consider that you are able to support a second home loan alongside your existing one.

There is no one credit score that fits all mortgages in Rome. Not all creditors 'score' the credit, they simply 'check' if they are unfavourable.

Yes, it could be possible. There are lenders who specialize in holiday home mortgages for properties in Rome and a smaller number who provide them for homes abroad.

Second home loans are no different than first home loans.

A home renovation loan is based on one key factor: its value after the renovation. Renovation loans use the appraised value of a home after renovation instead of the home's present value to calculate how much a homeowner can borrow. This gives homeowners credit for the increase in home value from the upfront proposed renovation.

Unlike traditional home equity loans, home improvement loans are based on what your home will be worth AFTER the renovation. This key factor greatly increases the amount you can borrow, because it allows homeowners to tap into their future equity, while also ensuring homeowners get the lowest rate possible.

It all boils down to the difference between the current value of the home and the value after the renovation. If you are making major improvements to your home its value will increase.

A home renovation loan is perfect for homeowners who would otherwise consider a classic home loan or cash refinance who would benefit from an appraisal based on the current value of the home, not its future value, which other home renovation loans they consider.

Lenders hire appraisers who use renovation plans provided by the homeowner to predict how much value the renovations will add to the home's current value. This is a special type of assessment called an "as completed" assessment.

This depends on the type of home improvement loan you are considering, the value of your home after the renovation, your current mortgage balance and your creditworthiness, among many other factors. Contact us now to see how much you might be able to borrow with a home renovation loan.

If you are looking for the best home renovation loan in Rome to finance your project, you need to give us as much information as possible.

Age is one of the factors that banks consider when evaluating mortgage applications. There is no official maximum age beyond which you cannot apply for a mortgage, but financial institutions and banks set their own age limit in line with their own risk policies. This tends to be around 75.

Approval criteria when granting a mortgage

The biggest difference between fixed rate mortgages, adjustable rate mortgages and blended mortgages is mainly in the way we pay the mortgage. This difference also means different financial conditions. If we are torn between these options, we should focus on three things: the interest rate, the term and the repayments.

The subrogation of a loan consists in the modification of one or more of the contracting parties, for example in the event of a change of borrowers or a change of financial institution or bank. There are a few types:

How can I sell a house with a mortgage?

Euribor is the acronym for Euro Interbank Offered Rate. This is the interest rate at which lenders lend each other money, which is often referred to as "the price of money."