10 December 2025

Purchase financing in Italy

Assess your borrowing capacity

Before jumping into houses, it is useful to understand how much you could reach with the mortgage. Banks generally consider an installment that does not exceed a certain percentage of the monthly net income to be sustainable.

In practice, you should think about:

  • Total income of the family unit (contracts, payslips, declarations).
  • Other commitments in progress: loans, financing, salary-backed loans.
  • Savings available for down payment, initial expenses and works.

    • Having a bank pre-valuation gives you a clear price range and makes you more credible when making an offer.

    Types of mortgages

    There are different types of mortgages available on the market, with combinations of rate, duration and repayment methods.

  • Fixed rate: constant installment for the entire duration; more predictable, less exposed to market variations.
  • Variable rate: installment that follows the trend of the reference rates; It may be more convenient at first but fluctuate over time.
  • Variable with cap: variable rate with a cap; compromise between risk and protection.
  • "Green" or subsidized solutions: for energy-efficient properties or for specific categories.

    • Mortgage costs

    The mortgage is not just the installment: there are initial costs that are good to consider from the beginning.

  • Preliminary fees: the bank applies them to open and manage the file.
  • Appraisal: the technician appointed by the bank evaluates the property.
  • Compulsory insurance: usually on the property; sometimes even on life, depending on the case.
  • Loan deed from the notary: if stipulated at the same time as the deed.