Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 01.02.2021, 09:54
Member
 
Join Date: Sep 2020
Location: ZH
Posts: 148
Groaned at 22 Times in 14 Posts
Thanked 157 Times in 74 Posts
Son of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputation
Buying property in Italy as primary residence, Mortgage?

Hi Folks,

I know a somewhat similar question was asked short while ago but I think mine is a bit different:

Does anyone know the banks that would finance mortgage on a "would be first residence" for a Swiss person?


Several years ago I badly wanted to buy a home on Sarginia as primary residence and only needed 1/3 of the purchase amount as Mortgage but several Italian banks would not even talk to me once they found out that I am not permanent resident of Italy. Which kind of makes this a chicken in the egg problem.

I know of several Germans who had Italian primary residence properties financed by German banks, also some Swiss people on Sardinia told me many years ago that they got financing via Swiss subsidiaries of Italian banks. Sadly I did not write down the names of those banks and have no contact to the people.
Mortgage brokers in Italy told me that they can get 50% Mortgage because they "know right people" but their behavior was rather shady and I refrained from using them.

This is quite unfortunate situation, CA-Nextbank (Credit Agricole) seems to be open and actively promoting Mortgages in France but for Italy there is no bank that would even consider that (BPS Suisse says absolutely no).
Reply With Quote
  #2  
Old 01.02.2021, 10:42
Junior Member
 
Join Date: May 2017
Location: Zug
Posts: 30
Groaned at 0 Times in 0 Posts
Thanked 6 Times in 5 Posts
zeteo has no particular reputation at present
Re: Buying property in Italy as primary residence, Mortgage?

Maybe try with Intesa Sanpaolo Suisse, the swiss subsidiary of the largest italian bank.
http://www.intesasanpaolopbmorval.ch..._bancarie.html
Despite focused on private banking, seems to offer some financing solutions.

Kind regards
Reply With Quote
  #3  
Old 05.02.2021, 16:25
Member
 
Join Date: Sep 2020
Location: ZH
Posts: 148
Groaned at 22 Times in 14 Posts
Thanked 157 Times in 74 Posts
Son of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputation
Re: Buying property in Italy as primary residence, Mortgage?

Quote:
View Post
Maybe try with Intesa Sanpaolo Suisse, the swiss subsidiary of the largest italian bank.
http://www.intesasanpaolopbmorval.ch..._bancarie.html
Despite focused on private banking, seems to offer some financing solutions.

Kind regards

Thank you, unfortunately nope, they do not offer any financing options.
Reply With Quote
  #4  
Old 21.02.2021, 14:52
Member
 
Join Date: Sep 2020
Location: ZH
Posts: 148
Groaned at 22 Times in 14 Posts
Thanked 157 Times in 74 Posts
Son of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputation
Re: Buying property in Italy as primary residence, Mortgage?

I had a discussion with two mortgage brokers in recent weeks and both told me consistent information that I would share here for anyone else who might have same question:


  • Italian banks happily finance Italian property for residents of Switzerland.
  • The person taking up mortgage must live and generate income in Switzerland, so no primary residence mortgage and thus no pension fund withdrawals is possible!
  • Banks will finance only residential property in good condition, this also includes holiday homes but excludes everything else. If bank will find out that house is in bad shape they will likely refuse financing. So no construction / renovation credits!
  • Italian banks will finance maximum 60% of the purchase
  • Total burden of all your debts should not exceed 30% of your NET salary, banks will also subtract your monthly rent (if you have one) from net salary before calculating burden %.
  • If you have Swiss Mortgage, Italian banks use your monthly payments as shown on your account statement as the load, there are no "hypothetical mortgage rates of 5%" etc. If you pay way too little (just interest for first mortgage), banks might add some amount but it will never be the same high / conservative sum Swiss banks use to calculate.
  • Person holding Swiss Passport will be limited in property type / size at the same level as Italians would be limited in Switzerland under Lex Koller law
  • Minimum financing size both brokers are willing to work on is 100k EUR

Last edited by Son of Mom; 21.02.2021 at 15:05.
Reply With Quote
The following 2 users would like to thank Son of Mom for this useful post:
  #5  
Old 21.02.2021, 14:58
Forum Legend
 
Join Date: Mar 2008
Location: ZH
Posts: 7,864
Groaned at 82 Times in 68 Posts
Thanked 11,637 Times in 4,731 Posts
doropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond repute
Re: Buying property in Italy as primary residence, Mortgage?

Quote:
View Post
Does anyone know the banks that would finance mortgage on a "would be first residence" for a Swiss person?
...
... wanted to buy a home on Sarginia as primary residence and only needed 1/3 of the purchase amount as Mortgage but several Italian banks would not even talk to me once they found out that I am not permanent resident of Italy. Which kind of makes this a chicken in the egg problem.
Since you're intending to make Italy your place of residence anyway, could you not just move there, rent a property, and thereby qualify for mortgages available to residents? Or am I missing something?
Reply With Quote
  #6  
Old 21.02.2021, 15:03
Member
 
Join Date: Sep 2020
Location: ZH
Posts: 148
Groaned at 22 Times in 14 Posts
Thanked 157 Times in 74 Posts
Son of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputationSon of Mom has an excellent reputation
Re: Buying property in Italy as primary residence, Mortgage?

Quote:
View Post
Since you're intending to make Italy your place of residence anyway, could you not just move there, rent a property, and thereby qualify for mortgages available to residents? Or am I missing something?

Sure but I will need to live there for a while, declaring income etc. Which is absolutely understandable but not an option for us as we cannot do moves easily due to situation in a family. We can only move once in the next years.
Reply With Quote
  #7  
Old 21.02.2021, 16:17
komsomolez's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: SZ
Posts: 1,617
Groaned at 80 Times in 55 Posts
Thanked 3,045 Times in 1,189 Posts
komsomolez has a reputation beyond reputekomsomolez has a reputation beyond reputekomsomolez has a reputation beyond reputekomsomolez has a reputation beyond reputekomsomolez has a reputation beyond reputekomsomolez has a reputation beyond repute
Re: Buying property in Italy as primary residence, Mortgage?

Intesa finance up to 80%, but only start lending from completion of construction in case it is a new building. Apparently 2-3 month paperwork to get credit assessment done. I bought a place under construction and will finance in summer. Will not be primary residence.

Last edited by komsomolez; 21.02.2021 at 18:37.
Reply With Quote
This user would like to thank komsomolez for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
what's the disadvantage of buying a property without mortgage? apns Housing in general 30 09.02.2017 10:22
Question about buying a property/mortgage sylwia Finance/banking/taxation 12 28.08.2016 22:09
EU Citizen, L Permit buying property for primary residence in Switzerland. Horatio Gonzales Housing in general 5 31.01.2016 15:37
Mortgage broker suggestion - buying non-primary property in France saiya-jin Finance/banking/taxation 1 19.09.2015 20:40
buying a property in non-residence canton with permit B pepero Housing in general 22 18.10.2013 18:34


All times are GMT +2. The time now is 17:29.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0