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MORTGAGE IN ITALY

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Italian Restore Only Mortgage Explain 

 

>> cliccare qui per la pagina  dedicata agli italiani residenti all'estero  <<

Other Mortgages Procedures 

>> Buy & Restore mortgage in Italy procedure explain <<

>> Refinance italian mortgage ( The Surroga) procedure explain << 

>> Italian Buy Mortgage procedure explain <<

 

this page to explain on  two  examples ,  the Italian Restore Only mortgage procedure and payments .

 

MINIMUM  MORTGAGE  AMOUNT  ALLOWED

100.000 euro

smaller mortgage requests are not accepted

 

 

According the italian banks standards requirements  , the foreign borrower  can receive a  mortgage  till max 70% on the   property commercial value , calculated once the restoration works have finished . This calculation has to confirmed by the bank survejor .



EXAMPLE  1 

 

Basis Points 

A) the borrower is owner of a property whose the commercial value is   120.000,00 euro 
B) the commercial value of the property , once the restoration works are finished will   300.000,00 euro 
C) the borrower has an income that they can receive a mortgage for    300.000,00 euro 

 

Therefore the bank will pay a maximum mortgage of   300.000,00-euro

 

1> At signing (1) of the  the mortgage deed the bank will pay to the borrower , a sum of  84.000,00 euro  ( equal to 60% of the property commercial value , at bank survejor expertise)

(1)   according italian  mortgage law , the payment will be made  afther the mortgage on the property is estabilished , usually 5/10 days after registration of the deed  of the purchase .

 

From  the mortgage granted for 300.000,00 euro ( - 84.000,00 euro ) remain to pay 216.000,00 euro 

 

2> The bank pay to the borrower the remaining 216.000,00 euro , during restoration works , in one or more SAL ( state of woks advancing ), based on  expertises  maked by bank survejor ,  asked by borrower time to time when him necessity of money to proceed.  To receive the last payment , is necessary that the borrower  provide  to the bank the certification that the property is habitable . The final payment must be made no later than 24 months from the date of the mortgage contract signing.   

 

 EXAMPLE  2 

 

Basis Points 

A) the borrower is owner of  a property whose the commercial value is   120.000,00 euro 
B) the commercial value of the property , once the rsstoration works are finished will   300.000,00 euro 
C) the borrower has an income that they can receive a mortgage for  150.000,00 euro 

 

Therefore the bank will pay a maximum mortgage of   150.000,00-euro

 

1> At signing (1) of the mortgage deed  the bank will pay to the borrower , a sum of  84.000,00 euro  ( equal to 70% of the property purchase commercial value )

(1)   according italian  mortgage law , the payment will be made  afther the mortgage on the property is estabilished , usually 15 days after registration of the deed  of the purchase .

 

From  the mortgage granted for 150.000,00 euro ( - 84.000,00 euro ) remain to pay 66.000,00 euro 

 

2> The bank pay to the borrower the remaining 66.000,00 euro , during restoration works , in one or more SAL ( state of woks advancing ), based on  expertises  maked by bank survejor ,  asked by borrower time to time when him necessity of money to proceed.  To receive the last payment , is necessary that the borrower  provide  to the bank the certification that the property is habitable . The final payment must be made no later than 24 months from the date of the mortgage contract signing.   .   

 

 


VERY IMPORTANT  >  in any case , in the time between the first and the last mortgage payment , the borrower will be pay the bank installments composed only of  the interest on principal  payed  . The full first payment of principal and interest will be required  AFTER  the bank have been payed the full amount of the granted mortgage . 

 

 

ATTENTION 


all examples is ONLY examples, the real mortgage value , mortgage payable quote , mortgage interest , are subject to the finally Bank approvation . 

 

INTEREST RATES INFO 

Fixed interest rate is freezed at mortgage contract signature and remain freezed for all mortgage duration . The fixed Interest is the sum by the Bank Spread on the term of the mortgage in year (duration) , added to Eurirs correspondant , working at the date of mortgage contract signature. 

Variable interest rate vary month by month according Euribor monthly basis . The variable interest rate is the sum by the Bank Spread on the term of the mortgage in year (duration) , added to Euribor correspondant , working at the date of mortgage contract signature. 

 

 

>> Klick here to Go back to Italy Mortgage Guideline <<

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME 

Your home may be repossessed if you do not keep the mortgage installments

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