How can Russian citizens get a mortgage in Italy?

Introduction

Due to the fact that the earnings of Russian citizens are not formed on the territory of Italy, to successfully obtain a mortgage is required to provide notarized translations of documents confirming these incomes into Italian.

Borrower's income requirements

When applying for a loan, it is important that the borrower's monthly income is at least three times the estimated monthly payment.

Types of real estate

Mortgage lending is possible both for the purchase of already completed real estate and for properties under construction. However, it makes sense to take into account certain restrictions concerning properties in the process of construction. In particular, mortgage financing may be available if:

• The degree of readiness of the facility under construction is less than 70-80%.
• There is no more than six months to go before construction is completed.

Loan terms

The most favorable conditions for obtaining a mortgage are provided to buyers who are interested in primary market objects that have already been commissioned, as well as in the secondary market or in the segment of high-class real estate. When applying for a mortgage, banks, as a rule, overestimate the value of real estate. This is done in order to ensure that in case of non-payment of loan obligations by the borrower to ensure the possibility of further sale of property at auction, which allows the bank to return its investment.

Peculiarities for non-residents

For non-residents, mortgage lending is only allowed for residential real estate, so it is important that the object is registered in the land registry as a dwelling. Mortgage loans from Italian banks are issued exclusively in euros.

Interest rates

In the third quarter of 2012, interest rates on mortgage loans were floating in the range of 3.5-4%, fixed rates ranged from 4.7% to 6%. The specific value of the interest rate depends on the amount of the down payment.

Where to get a mortgage

Currently, the largest number of mortgage offerings are concentrated in regions such as:

• Ligurian coast
• Lake Como
• Lake Maggiore
• Stresa
• Tuscany
• Amalfi Coast
• Sardinia
• Rome
• Milan
• Venice

In most other regions of Italy, mortgages are also available, but in the south of the country, especially in Sicily and Calabria, the transaction of real estate purchased on credit can be associated with certain difficulties.

General requirements of banks

As for the general requirements of banks for lending to non-residents, including citizens of Russia and other CIS countries, the borrower can only be a natural person. Usually, Italian financial institutions do not have strict restrictions on the minimum amount of a mortgage loan, but in practice, applications of non-residents are considered reluctantly if the requested loan amount is below 100,000 euros.

Maximum possible loan amount

The maximum possible mortgage amount can be 65% of the market value of the home, excluding various fees and commissions.

Mortgage conditions in Italy

In Italy, mortgages are offered for terms ranging from 5 to 30 years, with the borrower not exceeding the age of 75 by the end of the loan. Mortgage options can be fixed-rate, floating-rate or combined.

Requirements for borrowers

Italian lending institutions require borrowers to prove their financial status, which is usually done by providing income statements or bank statements. An important aspect is the recording of all the borrower's debt obligations, including:

• credit loans;
• rent;
• alimony;
• other loans.

These expenses are taken into account when calculating the total financial burden. Regular monthly payments on the mortgage and other obligations must not exceed35%of the borrower's total income or the combined income of the entire family.

Documents for application submission

When applying for a mortgage loan, you need to gather a certain set of documents, which includes:

• a copy of the foreign passport;
• TIN (codice fiscale - it can be obtained in Italy after signing a preliminary agreement or at the Italian consulate in Moscow);
• documents confirming the existence of the business (if any);
• a certificate of employment for employees;
• payroll;
• taxation data;
• bank account information and statements.

Guarantees and additional documents

Guarantees can be provided to prove your financial strength, such as:

• certificates of timely payment of taxes;
• information on fulfillment of obligations on previous loans and alimony.

The bank may also ask for documents confirming family composition - these may be birth certificates or driver's licenses. All documents must be translated into Italian and notarized by a notary at the Italian consulate.

Usually the document requirements depend on the specific bank, but there are general conditions that are observed. It is also important to have a preliminary sales contract and information about the selected real estate.

Application processing timeframe

In terms of timing, banks in Italy consider loan requests within a3-4 weeks.

Conclusion

In conclusion of the article on the process of obtaining a mortgage loan in Italy for Russian citizens, I would like to summarize and highlight the key points that should be considered by everyone who is thinking about buying real estate in the Italian market.

The mortgage lending process certainly requires careful attention and thorough preparation. Since our income is not generated in the country in which we plan to purchase real estate, it is necessary to pay special attention to the correct execution of all necessary documents. Translation of documents into Italian and their notarization at the consulate are mandatory steps that will ensure the legality and correctness of our loan application.

Requirements of banks

Lending organizations in Italy have high requirements for borrowers seeking a mortgage. Before applying, you must ensure that your monthly income is three times the potential monthly loan payment. This not only shows your financial solvency, but also provides the bank with confidence that you will be able to meet your obligations.

Types of real estate and conditions

In addition, it is worth noting that different types of real estate - whether primary or secondary market - may have different conditions for obtaining a loan. In this case, the age of the dwelling, as well as the stage of construction, also becomes an important aspect. It is especially worth paying attention to properties under construction, as there are specific restrictions on them.

Maximum loan amount

I can't help but mention the notionmaximum loan amountwhich is often 65% of the value of the property. This also emphasizes the need to have sufficient savings for the down payment, which can be a significant amount. Given the current interest rates, which range from 3.5% to 6%, we must be prepared for certain financial risks.

Prospects and dreams

I think it is important to emphasize that despite all the difficulties and paperwork, the opportunities to buyreal estate in such picturesque regions asTuscany and the Ligurian coast make the process worthwhile. With every step, from the preparation of the documentation package to the transaction process itself, we are getting closer to the fulfillment of our dream of owning real estate in Italy.

Result

Thus, success in the process of obtaining a mortgage loan depends primarily on:

• Responsibilities
• Willingness to collect and execute documents
• Understanding the requirements of Italian banks

And, of course, from your passion for life in this amazing country. I hope the information in this article will help you make the right choice and successfully realize your plans.