Mutuo (Mortgage Loan)

A loan obtained usually from a bank to finance the purchase of real estate, secured by a mortgage lien (ipoteca) on the property. In a contratto di mutuo, the bank lends the- Mutuo (Mortgage Loan): A loan obtained usually from a bank to finance the purchase of real estate, secured by a mortgage lien (ipoteca) on the property. In a contratto di mutuo, the bank hands over a sum of money to the borrower, who agrees to repay it with interest over a set term . Mortgages in Italy typically have terms of 10 to 30 years. They can have a fixed interest rate (tasso fisso), variable rate (tasso variabile), or mixed/adjustable rate. Banks often lend up to 80% of the property value (LTV), though sometimes more for residents or less for non-residents. The borrower must sign the loan contract in front of a notary, who then registers the mortgage. Italian mortgages usually have an initial cost (commissione di istruttoria, appraisal fee, etc.) and require life/fire insurance. Thanks to “portability” laws, borrowers can refinance via surroga (subrogation) without penalty.