Not just one from an Italian bank, but one a person working in Italy would get?

What kind of mortgage could I get with an "average" Italian salary of one person? How long would the repayment time be, and would I be paying fixed variable interests?

Again, thank you very much for any answers, and sorry if this is in the wrong section!

Not just one from an Italian bank, but one a person working in Italy would get?

What kind of mortgage could I get with an "average" Italian salary of one person? How long would the repayment time be, and would I be paying fixed variable interests?

Again, thank you very much for any answers, and sorry if this is in the wrong section!

You can get fixed or vaiable rate mortgages, as well as other combinations. Some lenders are willing to finance 100%, other only 80%. Traditionallly the term used to be 15 years, but I have seen some lenders advertising 40 year terms. It very much depends on your circumstances and what the lender is offering. The other thing to remember is that when you buy a house with a mortgage, not only is the house purchase notarised by a Notary (which has a fee), the mortgage transaction is also notarised and this means an additional fee.

Do you know what calculations the banks do to make sure you can repay the loan?

I know that in Finland with a "normal" salary you can only spend 40% of your salary on the mortgage, or most banks will not loan you the money... Are there similar limits in Italy?

I'm thinking that I could get 30-50% of the money in advance and loan the rest. That means I could need as much as 80.000 euros depending on the location. Can one person get that much money, when a reasonably timed mortgage of that sum will cost at least 500 per month?

You can get fixed or vaiable rate mortgages, as well as other combinations. Some lenders are willing to finance 100%, other only 80%. Traditionallly the term used to be 15 years, but I have seen some lenders advertising 40 year terms. It very much depends on your circumstances and what the lender is offering. The other thing to remember is that when you buy a house with a mortgage, not only is the house purchase notarised by a Notary (which has a fee), the mortgage transaction is also notarised and this means an additional fee.

What are the current interest rates on a 15 year mortgage in Italy? How many years of income statements must be provided to the bank for approval? What other source of information must be presented to the bank for a mortgage application?

Thank you
Frank

The South of Italy is encountering a property boom, and due to the high demand for new Italian property as a result of the structural uncertainties and the lack of home warranties from old resale properties. These are some of the reasons for the increasing interest in new home developments. Foreign purchasers are now increasingly buying properties "from spec" from Italian property developers. This means that the purchaser will buy new Italian properties from the plans, and select which property they want within a particular development. Typically, purchasers who buy a new property have to make regular installments during key stages of the property development (opposed to paying for the property when it is complete), and an initial deposit of 5% to 10%. The initial deposit and regular installments vary from one Italian property developer to the other. A major reason why we have seen the increase in new property sales is that bank guaranties protect you the purchaser in the unlikely event the Italian property developer has financial difficulties before the property is transferred to your name. Some major developers are linked with banks who are involved with the mortgage process on the sale of your property and guaranties each payment made during the building construction completion phases. Smaller builders offer under written personal guaranties from the Architect who is in most cases the director of the project and takes full responsibility for the security and completion of your new home.

These factors have put the Foreign Buyer more at ease and are now avoiding the costly pitfalls and renovation expenses of buying old properties which in most cases have not been inspected by government building officials for many years vs new properties in Italy.

Foriegn Buyers: Whats a Prenotazione?
When purchasing a new build, you may be asked to sign an agreement which shows you are serious about the property and want to reserve it (known as the Prenotazione), and this is accompanied by a small deposit. This is the time when the survey is organized as well as local land registry searches and checks with the local authorities (Comune) to see that the property complies with local planning and building regulations. Normally this work is carried out by a local surveyor (geometra) and public notary (notaio). If you wish you can have these and additional searches and a structural survey organized by an independent firm of Italian specialist solicitors These checks and searches can take up to three weeks and the completion of the sale cannot go ahead without them.
Stage two
This is the exchange of written contract (compromesso) which is a binding legal agreement, signed by both parties or their legal representatives, to complete the purchase at a pre-agreed date at the offices of a named local public notary, chosen by the buyer. The price agreed is stipulated plus the agreed deposit which is between 10 and 30 percent of the purchase price. Italian law stipulates that if you pull out of the agreement you lose your deposit, so it is vital all checks and documentation are in order at this stage. If there are problems or if paperwork is on its way (eg planning documents) then a timetable should be drawn up for the completion of this. If the vendor withdraws from the sale then s/he has to pay you double the deposit back. At this stage the agents who have handled the sale usually requires their fee, normally three percent of the purchase price.
Stage three
This is where the sale is completed at the offices of a local notary. This process is often referred to in Italian as the 'atto'. It is normal for all parties to attend this in person and the details of the contract (rogito) are read aloud by the notary. If you don't speak Italian then a translator is made available by the agents handling the sale. It is the job of the notary to draft the purchase deed and to ensure the proper execution, registration, and payment of all Italian taxes relating to the completion. Although it can take up to an hour and perhaps longer to complete the formalities required to buy your new Italian property, there is a real feeling of achievement at the end!

Salve
Frank Tarsitano
www.italysouth.org