Spadafora Realty


Getting a Mortgage in Italy

Spadafora Realty works with select Italian banks specialized in granting mortgages to non-residents. Qualifying factors include an applicant’s:

  • Employment status
  • Income
  • Debt-to-income ratio
  • Age
  • Property’s purchase value

Typical loan terms for non-residents are 50-60% LTV, and mortgages generally start at €72,000 on properties valued at a minimum of €120,000.

Complete our Mortgage Calculator for an estimate, and contact us to start your application.

Italian Mortgage Calculator

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In order to qualify for a mortgage in Italy, Italian banks will consider your employment status, salary and source of income, debt-to-income ratio, age, and the property’s purchase value.

Generally, Italian banks prefer employment income to income from self-employment, and they will require you to have a strong net asset position. Italian banks will also expect you to have a low personal debt to income ratio; this DTI is generally in the range of 30% to 40%.

Italian banks will not grant mortgages to individuals over 75 years of age.

In order to obtain a mortgage in Italy as a non-resident, brokers will consider your type of income, the amount, and the currency of your main source of income. Typically, currencies in US Dollars, Euro, British Pounds, and Swiss Franks are preferred, followed by Canadian, Singapore, Hong Kong and Australian Dollars, along with Danish, Swedish and Norwegian Krone, and Japanese Yen. If you are from Central or South America but your main source of income is in US Dollars, you may still qualify for a mortgage in Italy. 

The typical LTV Ratio for non-residents is 60%, meaning that the bank will finance 60% of the purchase price of your new home and your downpayment will be 40%. Closing fees are not included in the loan. 

Depending on your country of residence, the documents required to apply for a mortgage in Italy vary.

In general, your mortgage broker will request a copy of your passport, utility bill (to confirm your residential address), marriage certificate or status, Italian “codice fiscale”, employment contact, if applicable, payslips, most recently filed tax return, credit report, bank statements and proof of funds for the property purchase.

Properties that are in habitable condition, with working bathrooms and kitchen, and overall good maintenance conditions are mortgageable in Italy. This includes auction properties. Unfortunately, banks are unlikely to finance major construction works for non-residents, like the structural overhaul necessary on a 1 euro home.

The property also must be classified as residential; Italian banks won’t grant mortgages for commercial real estate to non-residents.

Italian banks will finance mortgages on properties with a minimum purchase price of €120,000. Considering the LTV ratio of 60% for non-residents, mortgages will start at €72,000.

There are a few fees to consider when applying for a mortgage, including:

  • Mortgage Registration Fee; 0.25% of the mortgage amount
  • Banking Arrangement Fee; approximately 1% of the mortgage amount depending on the bank (maximum of €3,000 in most cases)
  • Property Appraisal; €300 to €500 (properties with extended plots could cost more)
  • Fire-Explosion Insurance (depends on the mortgage duration, property value, and financial institution)
  • Brokerage fees due only in the case of approval; 1.5% to 4% of the mortgage sum (varying according to the conditions with a minimum of €3,000)

For more questions regarding mortgage fees, please contact us.

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