Mortgage in Italy for foreigners: mutuo

A mortgage in Italy for a foreigner with a residence permit is a quite realistic story: there is no separate "mortgage for foreigners" here, and a residence-permit holder in most cases has access to the same terms as a citizen. This piece is an overview based on the experience of the community and partners: how banks assess a borrower, what rates and terms were cited in 2025, how much to prepare for the down payment and what makes up a strong case. This is not financial or legal advice; rates, limits and banks' requirements change quickly, so always verify the final figures on the specific bank's site.

Right away an important resolution of one popular myth: neither buying a home nor arranging a mortgage grants the right to a residence permit. There is detail on this in the breakdown myth: buying real estate and a residence permit.

Who can get a mortgage in Italy and is it worth taking?

A foreigner can get a mortgage in Italy too: formally you go by the same rules as citizens, but in practice the bank looks at your profile more critically, and much is decided not by the network as a whole but by the specific branch and employee. According to the community, taking one is reasonable if you are staying in Italy for the long term: the overpayment here is many times lower than people are used to seeing in the CIS, and the monthly payment on many properties works out cheaper than rent. According to the community, it makes sense to consider a mortgage if:

• you have already decided to stay in Italy for a long time, you are comfortable with its residency and jurisdiction;
• your employment is stable and confirmed by documents;
• you have lived long enough in the city and district where you intend to buy, and you know their pros and cons;
• the rental rates do not please you, and the monthly payment is comparable to a possible mortgage payment;
• you see that the price per square meter is gradually rising.

If you answer "yes" to most of the points, a mortgage is, according to the community, a reasonable option.

An important correction about status, according to the community: formally there is no "mortgage by status", but in practice with a Russian passport without permanent residence some banks refuse - there are stories where, even with an open-ended contract, registration of more than two years and a five-year permesso, a person was told that without permanent residence they would not be given a mortgage, and was offered a consumer loan instead. At the same time everything is very uneven: it happens that the same bank approves one borrower with a residence permit and refuses another. The practical conclusion is not to draw conclusions from one refusal, to go around several banks, and if permanent residence is close - to wait for it.

I went to my own bank, where my salary arrives: an open-ended contract, residency of more than two years, a permesso for five years. They refused even to discuss it informally - they said that without permanent residence a person with a Russian passport will not be given a mortgage, and offered only a consumer loan. And an acquaintance at another bank with a similar status had everything approved. So it is a lottery by bank, do not give up after the first "no".

We rented for about a year and a half in the same district where we later bought. Without that I would not have risked it: it is one thing to look at photos, another to know what it is like here in winter, how it is with parking and neighbors. Only when we realized we were staying for the long haul did we go and calculate a mortgage, not the other way around.

To quickly estimate whether you pass in principle, the community keeps several guideposts in mind (all "according to the community", verify the current details): a payment of no more than roughly 35% of confirmed income; a typical approved term of 20-25 years; a down payment from 20% of the value; and another roughly 10% on top will go to arranging the deal and the mortgage.

How much to prepare: the down payment and LTV

The main rule according to the community: the bank usually finances a maximum of about 80% of the home's value (the LTV indicator, in Italian percentuale di finanziamento), which means the down payment is at least roughly 20%. With a strong case it is realistic to get approval on the minimum down payment, but a foreigner should, while hoping for the best, prepare more too:

• according to the community, with a less transparent profile they may ask for a down payment of 30%, 40%, in the worst case up to 50% - and this sum has to be already in Italy;
• factor in the frequent nuance with the appraisal (perizia): the bank may appraise the apartment below the purchase price (for example, you buy for 100 thousand euro, the bank appraised it at 95 thousand) and then count 80% not of the deal price but of its own appraisal - your actual down payment grows;
• stories about a "mortgage with no down payment", according to the community, refer either to special programs for the youngest (under 36, the rates there are usually higher) or to gray schemes - this does not apply to a typical foreigner's case;
• a separate catch is land and plots: according to the community, if an apartment or a house comes together with a plot of land, the bank may not want to finance the land, and then the plot has to be appraised separately and paid out of your own funds - because of this the actual down payment grows.

On top of the down payment, keep in mind another roughly 10% of the value for associated costs (more on them below), so at the start, according to the community, around 30% of the property's price in live money adds up. Verify the exact values of LTV, the minimum down payment and the conditions on the bank's site - they differ and get updated.

The bank appraised the apartment lower than we were paying for it, and because of this asked us to add to the down payment. It is good we had a cushion: if we had counted right on the edge for 20%, the deal would have fallen through. The advice - always keep a reserve above the minimum down payment.

Our house came with a plot of land, and the bank refused to finance it - we had to appraise the land separately and pay for it entirely out of our own funds. Because of this our down payment came out much larger than the usual twenty percent. If you are buying a property with land, clarify in advance what the bank is willing to finance.

What rates and terms are cited (2025, according to the community)

Here it is especially important: any percentages are an aging guideline, rates move following ECB policy and market indices. According to the community, as of spring 2025 the guideline for the fixed rate was cited at roughly 2.8-3.2% per year; the average housing rate at the start of 2025 was mentioned at around 3%. This is below the crisis level of 2023-2024 but noticeably above pre-crisis values, and a quick return to levels of 1-2% is, according to the community, unlikely.

To make the scale of the swings visible: according to the community, before the crisis mortgages were issued at very low 0.9-1.5% (sometimes lower), then at the peak the average rate went toward 4-4.5%, and afterward it began to fall - they cited a pace of about one percent per year. From this follows a practical conclusion: the rate is not "now and forever", and for those taking a fixed rate in an expensive market it makes sense, according to the community, to keep an eye later on the possibility of transferring the mortgage to another bank more cheaply (surroga) once rates settle.

Types of rates according to the community:

• fixed (tasso fisso) - does not change for the whole term; this is the one members usually take, because the payment is predictable;
• variable (tasso variabile) - tied to indices (EURIBOR, the ECB rate) and changes; in calm periods it can be cheaper, but in a crisis the payment can rise sharply - according to the community, after 2022 almost no foreigners took it.

The mortgage term technically ranges from 5 to 30 years (in special cases longer), but the payments usually have to finish by a certain age of the borrower - the older you are, the shorter the available term. The community considers 20 years the standard; banks approve 25-30 too (the larger overpayment is profitable for them), and to especially reliable borrowers they sometimes offer a lower rate for a shorter term. It is useful to calculate several options in the range of roughly 10-25 years and with a down payment from 20% to 40%.

I wavered for a long time between fixed and variable, but in the chat they talked me out of variabile: you sleep more peacefully when you know the payment for years ahead. Yes, fixed is a bit more expensive, but for a foreigner predictability is worth more than a couple of tenths of a percent.

To estimate whether your income is enough for the payment and what thresholds are in play at all, it is convenient to use the built-in calculator (it also helps assess income for a residence permit - these are different things, but they are calculated side by side):

Estimate the monthly rata, LTV and one-off purchase taxes in the calculator:

What documents and income the bank asks for

According to the community, the key role is played by confirmed and "transparent" income. What they usually ask for:

• a salaried employee - the latest Certificazione Unica (the annual income declaration) and several recent busta paga (salary pay slips); the bank values an open-ended contract over a fixed-term one;
• a Partita IVA holder / entrepreneur - income declarations, according to the community often for 3 years (1-2 used to be enough, but since mid-2023 they almost always ask for three as protection against "a sole proprietorship for the sake of a loan"), plus VAT declarations with payment receipts confirming real activity;
• account statements (estratti conto) for several months, and better for a year - with a transaction history adequate to the income and "clean".

The "35% rule" applies separately: the planned payment must not exceed roughly 35% of income, and the smaller this share - the better. An important nuance according to the community: the bank does not count every income in full - for example, income on an open-ended contract may be counted at 100%, while income on a fixed-term contract or on a Partita IVA is "trimmed" to roughly 70%. The size of the "cut" is its own at each bank.

How this limit is calculated in practice according to the community: from the confirmed monthly income the bank subtracts a notional subsistence minimum (cited at around 1000 EUR) and existing payments on other loans (an installment for a phone, a car loan and so on), and from the remaining sum it dances out the maximum mortgage payment, rounding down. So even small current loans directly eat into the payment available to you - before applying it makes sense, according to the community, to close them if possible.

It surprised us that the bank does not just take 35% of income, but first subtracts the subsistence minimum and our active loans, and only the remainder goes toward the payment. We had an installment for appliances - and it directly reduced the approved sum. If you are planning a mortgage, it is better to pay off all the small stuff in advance.

My open-ended contract was counted in full, but my husband's income on a fixed-term one - only partially. In the end, on paper, our income turned out lower than we had calculated at home on a calculator. Factor in this "coefficient", otherwise the payment as a percentage of income will go out of bounds.

What makes up a foreigner's strong case

There is no ideal template - it is all at the bank's discretion. But according to the community, the chances are noticeably increased by:

• legal residence on a residence permit with settled taxes, registration and insurance; with a first residence permit the chances are lower, it is better to wait for the second document, and if conversion to permanent residence is near - to wait for permanent residence;
• applying not alone: if a spouse also works and is ready to become a co-borrower, the income is counted jointly, and the case looks more reliable;
• at least one borrower works as an employee in Italy - according to the community, an Italian employment contract impresses the bank more than a sole proprietor's successes;
• the presence of a guarantor (garante) - according to the community, in recent years refusals to candidates with a residence permit without a guarantor have become more frequent; the guarantor can be a foreigner with permanent residence, but better a citizen of Italy or the EU;
• citizenship of another EU country, if you have it - a strong plus, you should not "hide" it;
• buying a prima casa (the first, only home) - according to the community, the tax is lower and the terms milder than on a "non-first" one;
• a non-elite and liquid property - it matters to the bank that in case of default the home is easy to sell;
• the presence of other property in Italy (a car, a garage, commercial premises).

We were refused at the first bank, and the realtor said plainly: without a guarantor a case with a residence permit is now reviewed more strictly. We brought in a guarantor - a citizen of Italy - and at the second bank they approved it. So prepare the guarantor option in advance, so as not to lose time on refusals.

I had five years of a residence permit and about four years of official work. At one of the large banks they approved a mortgage for 30 years, but the down payment came out at almost 40 percent. That is, with a residence permit it is realistic, just be ready that a foreigner will be asked for a larger down payment and given a long term - that way the bank's risk is lower.

How the arrangement process works

The main difference from what is usual in the CIS, according to the community: in Italy the bank reviews the application for a specific property. First you find the home, then you go to the bank, not the other way around - the bank studies both you and the apartment at the same time. You can go in advance to "size things up", but any preliminary agreements will be verbal; even pre-approval (pre-delibera) is usually tied to a specific property whose owner agrees to a deal with a mortgage.

The key stages according to the community (this is a broad outline, not a step-by-step instruction):

• assessing the market, your chances and the advisability of a mortgage;
• (optionally) a preliminary conversation with banks;
• searching for a property and the seller's consent to a deal with a mortgage;
• submitting the application to the bank;
• the bank's check and appraisal of the property (perizia);
• the final approval or refusal;
• signing the contracts with the bank (the mortgage and insurance ones);
• the purchase-and-sale deal at the notary.

The whole path from idea to deal takes, according to the community, on average 2-4 months, but this is very approximate: the timeframe depends heavily on the readiness of the property, the number of owners, the agent's efficiency and other circumstances, not counting the mortgage itself. It is better to be ready for delays in advance.

A useful nuance about negotiations with the seller, according to the community: when the bank has studied your documents and financial situation and preliminarily approved the loan, it issues a kind of "approval check" with a validity period of around 6 months. This is a strong trump card: with an offer equal in sum and terms, the seller is more likely to choose you - your money is essentially already confirmed, while other buyers still have to go to the bank. The bank will still carry out a final check of the property itself afterward, but in bargaining this is a tangible advantage.

It was explained to us that after preliminary approval the bank gives a paper confirming financing for several months. With it we looked more reliable to the seller than the competitors: our money is in fact approved, while the others still do not know whether they will get a loan. In my opinion, this is an underrated argument when bargaining for a good property.

Do you need a mortgage broker and what the costs will be

A mortgage broker (mediatore creditizio, broker mutui) is an intermediary between you and the banks. According to the community, they are useful if you have a complex or "non-standard" case (a freelancer, income not from Italy), little time, or you have already received refusals and fear a new one. Unlike a single bank's manager, the broker works with several at once and knows where there is more loyalty to foreigners. For a simple case they are not mandatory, but even a one-off consultation, according to the community, helps you avoid mistakes. The broker's commission is cited at around 3% of the loan amount.

A guideline for arrangement costs according to the community (for a notional property of about 100 thousand euro, verify the current details):

• purchase-and-sale deal costs - on the order of 10% of the value: the notary's services, the registration tax (according to the community, about 2% of the cadastral value for prima casa versus 9% for a "non-first" home), the mortgage and cadastral fees, the realtor's commission;
• mortgage arrangement costs - noticeably less: imposta sostitutiva (a substitute tax, according to the community, about 0.25% of the loan amount for prima casa and 2% in other cases), the bank's fee for reviewing the application (spese di istruttoria), payment for the property's appraisal (perizia);
• mandatory insurance against fire/explosion in the bank's favor - by law; the bank may also impose additional non-mandatory insurance that adds to the monthly payment - opting out of it later is, according to the community, almost impossible.

We went without a broker and managed, but for friends with income from abroad they really helped: the bank itself would have turned them away, but through the intermediary they found those who work with such cases. If the case is non-standard, do not skimp on a consultation.

Buying a home is not equal to a residence permit: what is important to remember

Let us repeat, because false expectations are often built on this: the mere fact of buying real estate or a mortgage does not grant the right to a residence permit in Italy. An owned home can only simplify visa matters (for example, no hotel booking is needed for Schengen), but it is not a basis for a residence permit.

For a residence permit you need a separate legal basis - work, your own business (lavoro autonomo), digital nomad, study, family reunification or the grounds of a chosen place of residence. If your plan is precisely "to live in Italy", first choose the residence-permit route and consider buying a home separately. The built-in tool helps you choose a suitable basis:

It is also worth planning the money for the deal and payments in advance - under sanctions it is not easy to get euro into an Italian account; see a bank in Italy for a non-resident and transferring money from Russia to Italy.

Frequently asked questions in brief

• "I bought an apartment - they will give a residence permit" - no; you need a separate basis, real estate only simplifies the visa.
• "A foreigner is not given a mortgage" - they are; there is no separate mortgage for foreigners, but the case is reviewed more strictly.
• "20% is enough and you can go" - according to the community, keep a reserve: they may ask for more, plus the arrangement costs and the risk of an undervalued appraisal of the property.
• "The rate will return to 1-2%, I will wait" - possible, but in that time, according to the community, the property itself will rise in price: a cheap mortgage pushes prices up.
• "Money in the account = income for the bank" - no; the balance shows the presence of funds, while the bank calculates income from declarations and pay slips, and with reducing coefficients too.

Related articles

• Myth: buying real estate and a residence permit - why a home does not grant a residence permit.
• A bank in Italy for a non-resident - account, cards, restrictions under sanctions.
• Transferring money from Russia to Italy - how to get euro for the deal and payments.
• Residenza elettiva - a residence permit on the grounds of a chosen place of residence, if the goal is precisely to move.
• Forfettario and taxes - income proof and declarations that will come in handy for the bank.

Official sources

• agenziaentrate.gov.it - Italy's tax service: codice fiscale, cadastral value, the registration tax and imposta sostitutiva when buying a home.
• esteri.it - Italy's MFA and consulates: the grounds for a visa D and a residence permit (a reminder that real estate is not a basis).
• interno.gov.it - Italy's Ministry of the Interior: matters of residence permits and legal stay.

Related materials - Money, taxes and daily life

• Flat tax in Italy 2026: neo-residenti
• Canone RAI: how to opt out of the TV tax
• Italy tax return 2026: 730 vs Redditi PF
• Pension in Italy: INPS, record, assegno

Next stepMortgage (mutuo) calculatorMonthly rata by the French formula, LTV and payment-to-income checks, and the one-off purchase taxes (registro/IVA, imposta sostitutiva). A guide, not financial advice.

Documents for this topic

• Contratto di Locazione per Studenti Universitari con traduzione russa - esempio, Novara
• Form «Comunicazione di Ospitalita» - notification of housing provision for a foreigner (art. 7 D.lgs 286/98)
• Certificate of Tax Residency in Italy (Attestato di Residenza Fiscale - Agenzia delle Entrate)