Mortgage in Italy is a real opportunity to purchase luxury housing and become its owner
One of the simplest ways to buy a home in Italy is to take out a mortgage. You can borrow both directly in Italy and in Russia. Italian banks are quite willing to work with borrowers from Russia. The main thing is to meet the conditions set by lenders, and then mortgage in Italy will be accessible and easy.
So, what conditions await those who are not afraid to apply for a loan in this sunny country?
1. The loan term is up to 40 years, which is 10 years longer than in Russia.
2. The age limit is 75 years, whereas in our country it is 65 years.
3. The maximum loan amount is 70% of the property value. Our banks are willing to lend up to 90% under certain conditions.
4. It is possible to get a loan with either a fixed interest rate (3.5-5.5%) or a floating rate. In Russia, a fixed rate is usually offered, which is 9-15% per annum on the loan.
5. There is no moratorium on early repayment of the loan, while our lenders set a period of 6 months, after which you can start repaying the loan early.
As you can see, the terms of mortgage lending abroad are even more favorable than in our country. However, one should take into account that the mortgage is issued in euros. Given that the value of this currency relative to the ruble is gradually increasing, over time mortgage payments can become quite burdensome.
For a credit institution to approve a mortgage, it is necessary to prepare the required set of documents in advance:
- copy of foreign passport;
- income information;
- documents confirming tax payments for 1 year;
- bank account statements of the borrower, which will serve as confirmation that the borrower has funds;
- identification number of the foreign buyer, which each buyer receives after signing the deposit agreement;
- information on the borrower's expenses: alimony, obligations under other loans, etc.
All documents submitted to Italian banks must be translated into two languages: Italian and English. The bank reviews the documents and makes a decision to approve or deny the loan.
If the decision is positive, the procedure for issuing funds does not take much time. However, you should be prepared for additional expenses: insurance, bank fees, notary services, transaction registration costs, etc.
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