So an often asked question is….
……How much deposit I need to buy a house in Italy?
This is one of the most frequent questions people have on approaching me!!
Effectively I understand that this is a very important point.
For foreign clients, especially on small amounts’ operation, this makes very often the difference.
Usually the point of the bank is not completely understood.
Actually we can concretely get a max 60% of the house purchase price; even max 50% with some banks.
This is due to the fact that banks run some additional risks to lend money to foreign clients which are less checkable and so they want that clients are more involved in Italian operation so that they will have more interest to pay the mortgage and not lose their property.
This is a logic on this!
One important point, which I am usually asked for, is that this % is calculated just over the price and not over the total expense the clients have with notary fees, agency commissions, taxes and so on.
All these costs, even if quite important for clients, do not add value to the house which is the only real guaranty of the bank (apart from the incomes of the applicant).
Required deposit must be shown to the bank at the moment of the application even if some special cases are admitted.
For example, if the client is selling his/her house and wants to buy another property, we will be allowed to show the deposit even after the sale and nota t the moment of the mortgage application (but presenting some proof of house ownership).
Next time we will speak about a very special: when a client has already bought a house in Italy and wants to sell it and buy another one, still in Italy.
Keep calm and go ahead! The beauty of Italy is waiting for you!