First home loans – the complete guide to obtaining a mortgage

For the past several years in Italy there has been a law that guarantees tax breaks and deductions for all those who decide to take out a first home loan (also called a mortgage loan), thus saving on taxes such as VAT and registration tax.

Another facilitation, no less important, is that linked to the possibility of being able to make a deduction in the income tax return for the years involved in the loan, of registering for this type of mortgages drops from 7% to 3%, VAT is reduced from 10 % to 4% and cadastral and mortgage taxes must be paid in the amount of 1% instead of 2%.

There are very clear requirements to take advantage of these benefits that concern both the person who applies for the first home loan and the quality of the property in question.
There are very clear requirements to take advantage of these benefits that concern both the person who applies for the first home loan and the quality of the property in question.

First of all, this property , which must be in the municipality of residence of the applicant , must be destined exclusively for housing and must not be a luxury building. Furthermore, the applicant cannot obtain such benefits if he is the holder of any other right on another property (for example usufruct or bare ownership), even if this right is not exclusive but co-owned with other subjects or in legal communion with the spouse.

If at the time of purchase the applicant does not yet reside in the municipality where the property is located, he must nonetheless sign a declaration declaring his will to move within eighteen months , under penalty of forfeiture of any right of facilitation, unless the presence of objective force majeure. The failure to complete any renovation work on a pre-existing building, for which the soft loan was requested, cannot be considered a cause of force majeure.

The residence must however be transferred to the municipality where this property is located, even if it will not be habitable within the fateful eighteen months. The causes of force majeure that prevent the transfer of the residence, so far accepted as valid, are as follows: the bankruptcy of the construction company, earthquake, expropriation, inability to live in the building for objective reasons independent of the will of the applicant, revocation of a possible project to transfer the place of work.

Furthermore, the Revenue clarifies that, within one year from the signing of the contract, the building subject to benefits related to the first home loan must reach a state of advancement of the works at least up to the rustic state of the building itself. Where necessary, for transfers or various transfers, the right holder can also decide to sell the property and transfer the tax relief rights to another property to be elected as his own home.

MAIN FEATURES MUTUAL FIRST HOME

– Amortization plans varying between 5 and 40 years.
– Possibility of choosing the type of rate (see related articles below)
– Monthly or six-monthly installments
– Maximum installment allowed without guarantor equal to 40% of the net salary of the applicant.
– No complaints, bad payers reported in data, foreclosure in progress.