Applying for a Mortgage in Italy

Buying a house in Italy is an exciting project… but when it comes to applying for a mortgage, the process can sometimes feel complex, especially for foreigners.
Italian banks can finance both residents and non-residents, but they do so according to specific procedures and strict eligibility criteria.

In this article, we will explore the different financing options available in Italy, the conditions to meet, the documents to prepare and the alternative solutions if your application is non-standard.
A complete guide to understanding how to obtain a mortgage in Italy and move forward with your property purchase confidently.

Mortgage eligibility requirements in Italy

The mortgage market in Italy follows a cautious logic: Italian banks favour strong applications with stable income, a solid banking history and a clear tax profile.
They do not close the door to foreigners, but they are often reluctant to lend to non-residents, particularly when income is earned abroad.
Each application is assessed individually, and conditions can vary from one bank to another depending on the region, the property value and the borrower's personal situation.

In practice, Italian residents can borrow up to 80% of the purchase price, while non-residents are generally offered a maximum of 70% for properties above €100,000, and around 50% for lower amounts.
This means you will need a down payment of 30 to 50%, as well as sufficient funds to cover additional costs: notary fees, agency fees, official translations, administrative procedures… These costs typically represent between 7% and 10% of the property price and should be factored in from the outset.

To submit a mortgage application, it is mandatory to hold an Italian codice fiscale, which is required for any banking or notarial transaction.
Once the mortgage is approved, the bank will also require the opening of a current account with their institution, through which the loan funds will be disbursed and monthly repayments collected.

Interest rates offered in Italy are close to the European average:

• between 3.5% and 4.5% for a fixed rate,

• between 3% and 4% for a variable rate, indexed to the Euribor.

The loan term generally ranges from 10 to 30 years, but most banks require that repayment be completed before the age of 75, an indicative limit that may however vary depending on internal policy and the strength of the application.

Even if the process may seem demanding, it is entirely achievable with good preparation and the right support.
By presenting a complete, clear and well-structured application — including proof of income, translated documents and evidence of solvency — it is entirely possible to secure financing and successfully complete your property purchase in Italy, even as a foreigner.

Costs associated with a mortgage application in Italy

When you submit a mortgage application in Italy, it is important to know that several additional costs are added on top of the loan amount. These costs, which are largely unavoidable, cover the various administrative and technical steps required to validate the financing.

Here are the main fees to expect:

• €250: this covers the perizia (property valuation) carried out by a surveyor appointed by the bank. This step is essential: it verifies that the actual value of the property matches the purchase price, and ensures the property complies with urban planning and land registry regulations.
  If any irregularities are found (undeclared works, illegal extensions, land registry discrepancies), the bank may refuse to proceed with financing until the situation is rectified.

• €700: bank processing fees, covering the review of your application, document verification, risk assessment and drafting of the loan agreement.

• €2,500: the mandatory home insurance premium, covering risks such as fire for the full duration of the loan (in this example, 20 years). This insurance is generally paid in a single upfront payment at the time of signing.

• €860: the substitute tax (imposta sostitutiva), equivalent to 2% of the borrowed amount for a secondary residence (compared to 0.25% for a primary residence). This tax is automatically applied when the financing is set up.

In total, these fees can amount to between €3,000 and €4,000 depending on the loan amount and the nature of the property. Factoring them in from the start is essential to build a realistic budget and avoid unpleasant surprises at the time of signing.

Steps to apply for a mortgage in Italy

To apply for a mortgage in Italy, two options are available:

• contact several banks directly to obtain an initial estimate of the amount they are willing to finance;

• or make a purchase offer subject to mortgage approval, giving the bank time to assess your application before any commitment is made.

Once the application is submitted, the bank appoints an independent surveyor (perito) to carry out the property valuation. This mandatory step confirms the actual value of the property and verifies that there are no urban planning or land registry compliance issues that could prevent the financing.
If the estimated value is lower than the agreed purchase price, the bank may reduce the loan amount or reject the application.

The underwriting phase typically takes between 6 and 8 weeks. During this period, the bank examines the buyer's financial and professional situation, the property's compliance status and the overall coherence of the project.
Once the valuation and checks are complete, the bank issues a formal loan offer (offerta di mutuo) which the borrower must sign to accept the terms.

On the day of signing the notarial deed (rogito notarile), the bank is represented before the notary by an authorised representative empowered to release the funds.
The loan amount is then paid directly to the seller, simultaneously with the final signing of the purchase contract.

This process, while somewhat lengthy and rigorous, ensures the legal and financial security of the transaction for both parties, guaranteeing a smooth and well-managed property purchase in Italy.

100% mortgage for buyers under 36

In Italy, young people under the age of 36 can benefit from a particularly advantageous government scheme: the Fondo di Garanzia per la Prima Casa (First Home Guarantee Fund), established by the Italian state and managed by Consap (Concessionaria Servizi Assicurativi Pubblici).
This fund aims to facilitate access to mortgage financing for the purchase of a first primary residence, even without a down payment.

Thanks to this government guarantee, the bank can finance up to 100% of the property price, up to a maximum of €250,000.
The fund covers up to 80% of the borrowed capital, significantly reducing the bank's risk and enabling a full loan to be granted to young buyers with stable income but limited savings.

To benefit from the Fondo di Garanzia Prima Casa, several conditions must be met:

• be under 36 years old at the time of the mortgage application;

• be resident in Italy and establish your primary residence in the purchased property;

• not already own another property in Italy;

• the property must be located in Italy, used as a primary residence, and must not fall into the luxury property category (land registry categories A1, A8 and A9 are excluded).

The applicant's income must not exceed an ISEE (Indicatore della Situazione Economica Equivalente) of €40,000 per year.
This criterion targets young workers, couples or middle-income families looking to get onto the property ladder.

The benefits of the scheme go further: in addition to 100% financing, eligible buyers also enjoy reduced tax costs (partial exemption from registration tax, mortgage tax and land registry tax) at the time of purchase.

This state-guaranteed 100% mortgage therefore represents a genuine opportunity for young residents in Italy who wish to buy their first home without an initial deposit.
The process is handled directly through the bank, which takes care of submitting the application to the Fondo Consap during the loan underwriting process.

Italian banks that lend to foreigners

In Italy, each bank — and even each local branch — has its own decision-making autonomy when it comes to mortgage lending. This means there is no single rule that applies across the whole country: an application may be rejected at one branch and approved at another, depending on internal policy, the client's profile or the type of property.

It is therefore advisable to submit your mortgage application directly in the area where the property is located, as local branches are more familiar with the market, property values and land registry procedures.
Some of Italy's major banks such as Intesa Sanpaolo, UniCredit, BPER Banca, Monte dei Paschi di Siena and BNL (BNP Paribas Italy) regularly finance foreign buyers, provided the application is solid and complete.

It may also be worth approaching international bank branches operating in Italy, such as Crédit Agricole Italia or BNL – BNP Paribas, which are experienced in dealing with international clients and can help simplify the process.

If the major banks decline, do not be discouraged: smaller regional banks (banche popolari, local savings banks, credit cooperatives) are sometimes more flexible and open to discussion, especially when the project is clear and well-documented.

For more complex applications — for example, income earned abroad, a mixed income situation or a joint purchase — it may be worth working with a mortgage broker (mediatore creditizio).
These professionals know which lenders are open to non-resident applicants and can negotiate the best possible terms while saving you time.

If you would like support at this stage, our team can help you connect with Italian banks, international bank branches operating locally or specialist mortgage brokers, to guide you towards the solution best suited to your situation and your property project in Italy.

Tips for preparing your mortgage application

Getting a mortgage in Italy requires a complete and well-structured application, especially for foreign buyers.
Before submitting your application, it is essential to carefully prepare all supporting documents that allow the bank to assess your financial stability:

• employment contracts, payslips, accounting statements (for self-employed applicants),

• tax returns, recent bank statements, tax certificates,

• and, where possible, official translations of these documents into Italian, to facilitate their review by the mortgage department.

If the property you intend to buy is intended for rental or tourism purposes (B&B, guest house, short-term rental), it is strongly recommended to present a clear and realistic business plan.
This should outline the projected income, maintenance costs, tax liabilities and demonstrate the profitability of the project.

Our partner accountant can help you draw up this business plan and structure your financial file before presenting it to the bank.
A well-prepared application builds confidence, speeds up the financing decision and may even help you secure better loan terms.

Applying for a mortgage from abroad

Some buyers consider applying for a mortgage in their country of residence to finance a property purchase in Italy. In practice, this option is very difficult to implement.
Foreign banks with no presence in Italy do not have the authority to register a mortgage on an Italian property, as they are not registered with Italian land registry authorities.
They are therefore unable to use the Italian property as collateral for the loan.

Unless you own another property that can be used as collateral in your country of residence, most banks will refuse to grant a mortgage for a property purchase in Italy.

As an alternative, some foreign banks may offer a personal loan, generally for a smaller amount and over a shorter term, which can be used:

• either to build up the down payment required for a mortgage in Italy,

• or to finance a lower-value property without going through a mortgage.

For all other cases, applying for a mortgage in Italy remains the only genuinely viable option.
It allows the Italian bank to secure the loan with a mortgage on the purchased property, which protects the financing and simplifies the process.

Applying for a mortgage in Italy may seem complex, especially if you are not a resident, but it is an entirely achievable goal with the right preparation.
Each bank has its own criteria and timelines, but a clear, complete and well-presented application remains the key to obtaining a favourable response.

Whether you are a resident, non-resident or a first-time buyer under 36, there are today several financing solutions tailored to different profiles: standard mortgages, government-backed guarantee schemes for young buyers, or support from a mortgage broker for more complex situations.

At Allerenitalie, we support you at every step of the process:
from preparing your application to connecting you with banks and partner experts (lawyers, accountants, mortgage brokers). Our goal is simple: to help you bring your Italian property project to life safely and with the peace of mind that such an investment deserves.

FAQs

1. Can a non-resident get a mortgage in Italy?

Yes, but the conditions are stricter. Italian banks generally finance up to 70% of the property price for non-residents, compared to 80 to 90% for residents. You will need to demonstrate stable income and provide documents translated into Italian.

2. How long does it take to get a mortgage in Italy?

On average, you should allow between 6 and 10 weeks from submitting your application to signing the loan agreement. This timeframe includes the property valuation (perizia), the creditworthiness assessment and the bank's final approval.

3. Is a 100% mortgage available for young buyers in Italy?

Yes, through the Fondo di Garanzia Prima Casa, buyers under 36 who are resident in Italy can obtain financing of up to 100% of the property price, backed by a government guarantee, provided their ISEE is below €40,000 and they are purchasing a primary residence.

4. What should I do if the major banks reject my application?

If a major bank declines, you can turn to regional banks or work with a mortgage broker (mediatore creditizio). These professionals know which lenders are more open to foreign applicants and can guide you towards suitable solutions.