Public employee or pensioner is not sufficient for access to credit
Buying a house is one of the reasons why Italians are more willing to go into debt. Thanks to the consequences of quantitative easing applied by the MCB, this is a particularly advantageous period for those who wish to apply for a mortgage. A scenario in which the Government Agency mortgage for first home purchase is one of the most competitive offers.
It is a product dedicated exclusively to those who refer to the public sector. They then have access to mortgage Government Agency for first home purchase only public employees and retirees.
However, being a public employee or pensioner is not sufficient for access to credit. It is also necessary to satisfy a series of requirements. First of all, to be registered with the Social Institute Credit Fund, the Unitary Management of credit and social benefits. Fund to which the applicant must be registered for at least one year.
In order for the Government Agency mortgage for first home purchase to be granted, it is also necessary that the public employee or pensioner who submits the application does not own any other home located on Italian territory. Requirement that also extends to other members of its family.
However, there are some exceptions, namely scenarios in which it is possible to obtain the Government Agency mortgage for the purchase of a first home even if already a homeowner.
Amounts and refund
Now that we have seen who the Social Institute ex Government Agency mortgages are aimed at for the purchase of the first home, let’s move on to the financeable amount and the repayment conditions.
By using these products, it is possible to obtain a sum of up to 300 thousand USD.
The amount payable, however, cannot exceed the value attributed to the property during the appraisal by the technicians appointed by Social Institute. In the same way, it is not possible to obtain a sum higher than the purchase price that was declared in the deed of sale of the real estate unit.
The repayment plan is in the French style and provides for constant and deferred half-yearly installments. It can last 10, 15, 20, 25 or 30 years. However, mortgages requested by those who have already turned 65 are an exception, in which case the maximum expected duration is 15 years.
The new rates 2018
As regards the interest rate, it can be fixed or variable. In the first case we have a Tan defined on the basis of the loan to value (LTV) method or in relation to the relationship between the value of the mortgage and that of the house. Below is the table with all the values applied to the Tan for fixed rate first home mortgages.
Those who opt for variable rate mortgages instead can benefit from a Tan equal to the value of the 6-month Euribor plus 200 basis points.
Government Agency mortgage application
Finally, let’s move on to the question of the Government Agency loan request for first home purchase. The loan application must be sent electronically, through the online service on the Social Institute.it site.
To send the request you must be in possession of the Social Institute Pin. code that can be requested at an Social Institute office or using the wizard on the Social Institute website.