Buy ABRUZZO PROPERTIES HOUSE - Italian Houses, Properties for sale in Italy - Abruzzo Real Estate - Idea Immobiliare - Guardiagrele

MORTGAGE GUIDELINES FOR NON-RESIDENT FOREIGNERS

Preliminary investigation
The bank collects all papers and does a thorough check. From the moment that the papers are delivered to the bank it should take about 1-2 months before you obtain the monies; depending on the time of year (August and December are the worst months due to National Holidays)

During the first stage, a bank surveyor will be sent to estimate your house. The estimate will be done on the structures but in many cases not the land. This policy is different for each bank. You will pay for the surveyor (about 250 – 300 €). The surveyor will send his report to the bank and according to the estimated value; you will receive approximately 60% to 70%. Residents could receive up to 90%.

Example: If the sales price of the property is 300.000,00 € and the surveyor’s estimate is 275.000,00 €, you will receive 220.000,00 € (at 80% of 275.000,00)
Types of mortgages
You must decide on which type of bank mortgage you want before the signature of the contract. One of the most favourable and widely chosen is the Mixed Mortgage. This type of mortgage offers a fixed rate for the first 2 years. After the two year period you may renegotiate the contract and either remain at the fixed rate or choose a floating rate. The renegotiations happen in the 3rd, 5th, 7th, 10th, 15th, and 20th years.
Terms of Payment
You have a choice to pay your mortgage monthly or every six months. There is a very small savings (approximately 0,5% of the mortgage amount) over 20 years if you choose to pay monthly.
Closing
On the date of closing you will sign the bank mortgage contract in front of the Notary. Usually you are able to secure some monies in advance (approximately 75.000,00 €), but you will not receive the balance until the house is registered at the National Register of Mortgages which takes about 1 month. From the monies you secure in advance the bank will deduct all their expenses: 2/1000 on the issued amount for the cost of the first stage and 0,25% tax
Expenses
These expenses are estimated on a bank mortgage of 165.000,00 €
- ou must have fire insurance on the house. The insured amount will be equal to the estimated value of the house, not the mortgage amount. These types of policies are not very expensive in Italy.
- The Notary fee (approximately 1.100,00 – 1.300,00 €)
- 0,25% substitute tax = 413,00 €
- 2/1000 cost for the preliminary investigation = 175,00 €
- Interest of the pre-amortization which are calculated from the day of the signature of the mortgage contract until the start of interest accrual...
Example: 10 December 2005 you sign the contract and interest accrual begins on 1 January 2006. The bank, at the time of closing will charge you for the 22 days of pre-amortized interest.

For every six month payment plan the accrual dates generally are 1 January and 1 July.
For a monthly payment plan the accrual dates generally are 1 January, 1 April, 1 July, and 1 October.

You can choose to pay the insurance, surveyor, and notary directly. All other monies will be deducted from the money that is paid to you in advance.
Tax rebates for residents
You are able to deduct up to 3.600,00 € of the interest you pay the bank from your annual tax filing. But, you can only deduct these monies if the house is your primary residence and you sign the bank loan contract within 6 months before or after the purchase of the house.