MortgagePropertiesNavigating the Italian Mortgage Maze: A Comprehensive Guide for Foreign Applicants

25 October 20230

Obtaining a mortgage in Italy as a foreigner involves navigating through financial and procedural aspects. You need to know the loan landscape in Italy, eligibility requirements, the different types of mortgages available, and the necessary documents.

Eligibility Criteria

The process of obtaining a mortgage begins with assessing your eligibility. Three factors are taken into consideration: the policies established by lenders and banks under the European Mortgage Directive, the eligibility criteria, and the suitability of the property itself.

Policy dynamics

The European Mortgage Directive has made it more difficult for foreign nationals to acquire mortgages, especially if they do not earn in euros. This directive seems to influence banks to adapt their credit policies and mortgage contracts for countries with different currencies. Lenders also take into account factors such as nationality, country of residence, and the presence of a source of income.


Determining affordability is critical in assessing the applicant’s ability to meet mortgage payments. It is important to demonstrate that the total sum of mortgage payments (including installments) does not exceed 35 percent of after-tax income. However, rental income is not included in this calculation.

Eligibility of the property

Before applying for a mortgage, it is important to ensure that the property you intend to purchase is eligible and legally available. This may involve submitting a number of documents, so it may be helpful to seek the assistance of an expert or mortgage broker such as FMoretto Consulting who can help you meet the requirements set by lenders.

Mortgage application dynamics

Interestingly, the chances of obtaining a mortgage are greater if you apply before moving to Italy. Lenders generally prefer applicants who have verifiable income, for at least 2 to 5 years, before considering granting a loan to Italian residents. However, there is some uncertainty about the availability of mortgages for nonresidents in the market, which necessitates the services of mortgage brokers. These brokers have access to mortgage products designed specifically for nonresidents.

Types of mortgages and current rates

In the mortgage market in Italy, it is possible to find fixed-rate mortgages. Keep in mind, however, that the availability of these options may vary when you decide to make a purchase. For foreigners, the Loan to Value (LTV) ratio is usually between 50 percent and 60 percent with a mortgage amount set at around 100,000 euros. Average interest rates have increased: the average annual interest rate for 2022 was recorded at 3 percent, a sharp increase from the average of 1.4 percent in 2021. In March 2023, average mortgage rates in Italy rose to 4.47 percent for mortgages up to 125,000 euros, 4.09 percent for mortgages up to 250,000 euros, and 3.74 percent for amounts over 250,000 euros.

Required documents

Documents such as valid ID cards or passports, the sales contract, proof of income, a credit report and proof of address are required to proceed with the mortgage process. It is advisable to gather this information in advance because of the time-consuming nature of this process.

Contact a mortgage specialist.

Given the landscape of mortgage procedures in Italy, it is advisable to contact an Italian mortgage specialist such as FMoretto Consulting. These professionals can greatly increase your chances of obtaining mortgage approval by working with banks and ensuring that your financing aligns with the property’s closing date. They can also guide you on when your presence is required by the bank to sign contracts and assist you in arranging building inspections and reviewing contracts for suitability to the banks’ requirements.


Successfully navigating the Italian mortgage system as a foreigner requires preparation and an understanding of the prevailing rates and terms. It may be helpful to seek assistance in overcoming policy challenges along the way.

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