Italy provides an array of benefits for people who are not residents of the country. Amid those is the provision of mortgages to non-residents. It means if you are someone who is keen on investing in real estate in the country, you have the chance to get a mortgage to cover a considerable amount of the total property value. There are, of course, several intricacies involved in the process. So, here is an article which will help you to know more about the process of securing a mortgage in Italy.
How does it work?
The first thing that you need to know about is how the mortgages work in Italy. The process of mortgage is when a borrower receives a lamp sum amount from a financial institution, such as a bank, and repays the money over time in installments. As a non-resident you can always take out mortgage not just to buy or build a new property but also to renovate an existing one. Here it is important to mention that as a foreigner one can expect to get maximum 60% of the project value, the amount is 80% for the residents. In Italy, the entire value of the property is not covered by the mortgage.
What Do You Have to Pay?
The process of mortgages to non-residents is fairly complicated. Hence, it may happen that you may have to take help of a lawyer to get things done smoothly. Here you also need to remember that there are certain fees in legal documents and services that you require to pay while opting for Italian mortgage. Here is a quick look at the costs that you need to take into consideration.
- Taxes
- Application Fees
- Broker Commission
- Notary Fees
- Power of attorney
- Surveyor fees
How Long It Takes?
This is one of the questions that you should have a clear answer to. Every process has its own required time and this one is no different. To start with, you need to make sure that you have all the documents you require to apply for the mortgage. Considering everything goes smoothly, you can get a loan within three to seven weeks of your initial application. However, in some cases it may require nearly three months too.
What Are the Documents Needed?
There are certain basic documents that you need when you are applying for a mortgage in Italy as a non-resident. Other than these, the bank may also ask for additional documents while considering your application.
- Copy of your passport
- Tax return
- Credit report
- Document of income
- Initial sale agreement
- Document showing marital status
What Is the Process?
The application of mortgage for non-resident in Italy has a certain process that you need to know about. These are the steps that will help you to understand what you should expect when you apply.
- The first step is where the bank reviews all the documents that you have submitted, especially your financial records. It takes about two days to get completed
- The next step, which takes about 3-14 days, is the pre-approval period
- After this, a bank-appointed surveyor conducts a compliance check at the property you are going to purchase or renovate. After satisfied inspection, they issue compliance and evaluation certificate. This process may take somewhere between 14-21 days
- This is the title check step. It means a notary views the property title and upon satisfaction, issues a title check report to the bank. This process takes about 7-14 days
- After getting the necessary satisfactory documents – the solvency check, the compliance check and the title check – by the notary, the bank issues a formal approval of the mortgage. The completion of this process may take somewhere between 7-14 days
- Once the bank issues the final approval, the borrower and the bank decides on a signing date. The documents are then signed and eventually the funds are released. This whole process may take 14-28 days
Getting a mortgage in Italy is easy if you have the appropriate documentation and follow the proper route.
