MortgagePropertiesBuying a property without a mortgage: all the alternatives available today

3 August 20230

Buying a home represents one of the most significant financial commitments in the life of a person and a family. Traditionally, the most common solution is to resort to a mortgage, but as recent data reveal, banks are becoming more and more demanding in their lending, complicit in rapidly rising interest rates. But the question remains: what to do when you do not have the full amount for the purchase or when you cannot access a mortgage? Let’s explore some alternatives.

1. Rent to Buy

“Rent to Buy” or rent with redemption is a solution that allows you to rent a property with the option to buy it at an agreed price after a specified period of time. With this solution, a portion of the rent paid is deducted from the final purchase price. In other words, the tenant pays for the use of the property and simultaneously accumulates capital for the purchase.

2. Conditional sale

A conditional sale is a contract in which the seller retains ownership of the property until the buyer has paid the full purchase price. This option offers some security to the seller, who can regain possession of the property in the event of non-payment, while offering the buyer the option of paying for the property in installments.

3. Real estate leasing

In real estate leasing, a lending institution or licensed broker purchases the property selected by the buyer. The buyer then pays a periodic rental fee and at the end of the contract has the option to redeem the property by paying the price agreed in the contract. This option can be particularly advantageous for those who cannot access a mortgage.

4. Home loan for low amounts

Instead of a traditional mortgage, you may consider a home loan for low amounts. This targeted loan allows you to cover expenses related to your home, including the purchase of a property with a value that is not too high. This alternative offers a quick turnaround time and does not necessarily require the collateral of a mortgage loan.

5. Buying at auction

Real estate auctions make it possible in many cases to obtain properties at lower prices than the market. Participating in an auction can therefore be a strategy to save significantly on the purchase.

It is necessary to be well informed about the condition of the property and be alert to any hidden defects. But with a little patience, exceptional bargains can be found.
This solution can offer more affordable prices than the traditional market.

6. Redemption of occupied property

If you already live in the rental property, an attractive option may be to redeem it from the owner. Often advantageous appraisals are obtained, and the advantage is that you already know the home you are going to buy.
Again, better to opt for a neutral appraisal to be sure of the real market value of the property.

7. Exchange or replacement

Those who already own a property can use it as a partial form of payment for the new one they intend to buy, through a trade-in. This is a solution that cuts transaction costs and makes it easier to obtain a mortgage. Replacing the mortgage can also be a smart move: you pay off the old mortgage and take out a new one to finance the new purchase


As can be seen, alternative solutions to the traditional mortgage are numerous and can certainly help ease the financial commitment on the shoulders of those who decide to buy a home.

It is then up to the potential buyer to carefully evaluate which instrument may be most suitable for him, considering aspects such as age, work situation, and his own and his family’s economic availability.

There is no perfect solution, but by cleverly combining mortgage and other supplementary formulas, it is possible to arrive at a less burdensome and more serene financial quadrature. The important thing is to rely on professionals in the field such as FMoretto Consulting and sift through the merits and demerits of each option with them.

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