The financing of the entire amount for the purchase of the first house could be the ideal solution for those who do not have the liquidity, to cover that part of the share that the bank does not normally provide.
When the loan advance is a problem
As a rule, classic mortgages provide for a financing equal to 80% of the cadastral sum , leaving to the aspiring owner the burden of paying a substantial advance at the time of purchase (20%). The 100% mortgage is a financial product that some banks provide to cover the total amount of the cost of housing, provided that it is the first house, which is located in Italy and that the applicant is not yet accomplished of 35 or 40 years .
Obviously, the basic requirements remain unchanged, ie that the contractor is not enrolled in the Crif (list of bad payers) and that produces a guaranteed and stable income, in relation to which the monthly payment will then be calculated, which must not exceed 30% of the salary. and above all the mortgage on the property.
Bank exposure and spread
Financing 100% of a property consists of greater risk to credit institutions and, as in all economic transactions, uncertainty is offset by higher revenues. The bank in return for the higher exposure will demand a higher profit, ie it will apply higher rates with a spread (difference between costs of internal financial products) higher than 0.2 / 0.5%, whether these are fixed-rate or variable-rate mortgages. .
With the ICRC resolution of 22.04.1995, the Bank of Italy imposes on credit institutions the limitation of mortgages in an amount of 80% of the value of the property, the gap of the remaining 20% will be covered by a surety insurance policy, a mortage insurance . This guarantee can be ignited by the borrower choosing the most convenient among the proposals of various insurances, or left to perfect the credit institution, which almost certainly will apply a higher spread.
It is well understood that the interest rates applied by the banks are in any case bound to the rules on the transparency and protection of credit and savings; the high level of supervision is entrusted to the Interministerial Committee for Credit and Savings (ICRC) with d. lgs. 1.09.93 n. 385-TUB and in the updated version to d. lgs. 218 of December 2017.
Integration with the Consap guarantee fund
In addition to the 100% loan, the state guarantee fund can be used for young couples. The Consap First Home Guarantee Fund allows you to obtain a state guarantee for a value of up to 50% of the property, the state commitment must be recognized by all credit institutions which will be exempt from the request for additional forms of pledge, to exception of the mortgage and the case of death and loss of employment . The Consip fund is designed for vulnerable groups and is permitted within certain limits:
- age not over 35 years;
- to perform an atypical job;
- families with disabilities;
- single parent with dependent children;
- Conductors of popular housing.
In addition, the dwelling must fall into one of the energy-saving categories, not exceeding € 250,000 of cadastral value, be erected on national territory and must not belong to the luxury categories (A1, A8, A9).
Which banks provide 100% mortgages in 2018
The 100 percent loan for the purchase of the first house remains a form of financing accessible to everyone and without any limitations related to the welfare state . It is enough to be the owners of at least an income guaranteed by a permanent contract to be able to think about buying a house, without the often impossible commitment to anticipate even large sums of money.
This remains a more expensive form compared to classic financing, but considering the lack of alternatives, while saving the provision of lost funds such as those relating to the rent, it is still a very favorable solution. Not all credit institutions offer a 100% mortgage and not all on similar terms, starting from the duration, the age limit and the amount that can be financed.
Compared to recent years, many banks have stopped providing loans under these conditions; for 2018 available for delivery are certainly Intesa-San Paolo and Unicredit , while Credem covers up to 95% of the value and MPS finances up to € 200,000, but it is also worth asking at other institutions, as any funding could be structured in this sense or maybe set in a very similar way.