Characteristics, requirements, application, maximum amount that can be granted, duration, interests: everything you need to know about financing at subsidized rates to purchase properties or other reasons.
Several readers ask us how the INPS mortgage loan works. This institution is still unknown to most people, probably because it is not advertised enough, but it offers favorable and much more advantageous conditions compared to those practiced by private banks. There are, however, access requirements and constraints to respect. It is also possible, for those who already have a mortgage, to switch to INPS in order to obtain lower rates and lower installments than the current ones.
INPS mortgage loan: who is it aimed at?
The INPS mortgage loan is a long-term financing aimed not only at pensioners but also at employed workers with employment contract indefinitely e registered with the unitary management of credit and social benefits for at least a year.
To access the mortgage theage of the applicantadded to the duration of the amortization plan, must not exceed quota 80. For example, a 50-year-old will be able to request a thirty-year mortgage, but a 60-year-old will not be able to exceed the maximum twenty-year repayment period.
INPS mortgage loan: what you can ask for
The INPS mortgage loan can be requested for one of the following reasons:
- finance thepurchase of a property by a company or a private individual;
- build or expand a property on owned land;
- renovate a property owned;
- buy a box or a parking space;
- studio and professional training (also for the spouse, the member of the civil union, the de facto partner with a registered contract or a tax-dependent child).
Property requirements
The property to be purchased or renovated with the INPS mortgage loan must be:
- located in Italy (not abroad);
- used for residence of the applicant and his family unit;
- not luxury (properties included in cadastral categories A1, A8 and A9 are considered as such);
- free and available (not occupied, for example by tenants with a current lease).
If the property is in co-ownership with the spouse, part of the civil union or de facto partner with a registered contract, the applicant must be the owner of at least 50% of the property.
In all cases, a guarantee of the loan granted is registeredmortgage for an amount equal to double the value of the property (so if the borrower does not pay the installments the INPS will be able to seize it and sell it at judicial auction to satisfy itself on the proceeds), and it is necessary to stipulate a insurance policy against fires, lightning and explosions valid for the entire duration of the loan.
The garage or parking space must belong to the main residence and must not be more than 500 meters away from it.
Applicant requirements
Applicants for the INPS mortgage loan (which can be jointly held) and members of their family unit must not already be owners of other homes located in the national territory. They do exception the cases of:
- quota ownership of residential properties less than 50%;
- ownership of other homes received by donation or inheritance, if they are burdened by real rights of enjoyment (usufruct, use or habitation) for at least 5 years;
- assignmentby judicial order, of the property owned all’ex coniugein case of separation and divorce;
- unusability of the house already owned due to natural disasters.
How to obtain an INPS mortgage loan
To obtain the INPS mortgage loan it is necessary to present the online application on the institutional portal; it can be done personally or through authorized intermediaries, such as Cafs, accountants, employment consultants and patronages.
The request it must be submitted on the INPS website from 15 January to 30 November each year. Applicants are placed in a ranking based on the chronological order in which applications were submitted. In case of excess compared to the funds annually allocated by the Institute, all other conditions being equal, the person with the lowest ISEE prevails.
As a rule, the INPS mortgage loan must be single: that is, you cannot request two at the same time, until the first is repaid. You can, however, get a second INPS mortgage loan in the event of an official transfer of the place of work to another Municipality, or in the event of dissolution of the marriage, civil union or de facto cohabitation, if the property purchased with the previous loan was assigned to the ex-partner.
INPS loan granting times
Keep in mind that the granting of the loan is not immediate, but is subject to the verification of the applicant’s requirements by INPS. It can take up to several months if Institute officials request clarifications or additions.
The ordinary timeframe for defining the procedure is 75 daysstarting from the date of submission of the application. In case of acceptance, the amount must be paid to the borrower by 120 days.
The competent INPS office the decision to grant the loan is decided by the place where the property is located. It is possible to contact it to file any additional documents and obtain all the answers regarding the handling of the case.
INPS mortgage loan: grantable amounts
The maximum amounts that can be requested with an INPS mortgage loan are:
- 300,000 euros for thepurchase of a propertyor for its construction;
- 150,000 euros for renovations of owned homes;
- 75,000 euros for thepurchase of a box or a parking space;
- 100,000 euros for reasons for study or professional training (registration and attendance of the applicant, or of a member of his family unit – for example a child – in university or post-university courses (research doctorates and master’s degrees).
In all cases, the mortgage amount must not exceed that of value of the property (ascertained by INPS technicians through an appraisal) and the purchase price declared in the sales deed. Therefore, respecting the aforementioned conditions, you can get up to 100%in order to finance the purchase entirely through the INPS mortgage.
Furthermore, the total annual installments to be paid must not exceed half of the net income total family unit. For example, a family made up of a husband and wife, both workers, with respective annual net incomes of 36,000 euros and 24,000 euros, cannot have a monthly payment exceeding 2,500 euros.
If there are other ongoing financing of any nature to be repaid and not yet extinguished, the aforementioned limit is reduced proportionally.
INPS mortgage loan: duration
The duration of the INPS mortgage loan can go from a minimum of 10 years to a maximum of 30 yearswith standard “steps” of 5 years each included in this range (for example, 15, 20 or 25 years, but not 12 or 18).
I pensioners they can obtain a maximum duration of 15 years. Keep in mind that for the purposes of the duration of the grantable mortgage, it is always necessary to respect the Quota 80 which we talked about above. Therefore – for example – a seventy-year-old will only be able to obtain a ten-year mortgage.
INPS mortgage interest rates
The interest rate can be either fixed That variableat the discretion of the applicant. Will prefer the fixed rate those who want an installment of a predetermined and constant amount; will choose the variable rate those who, in exchange for a slightly lower initial instalment, are willing to bear the risk of market fluctuations, which will influence the reference index for calculating the interest rate and could, therefore, increase the amount to be paid in the course of time.
You can consult the information on the INPS website tabelupdated annually, relating to current interest rates for new mortgage applications and at the rates established for contracts already stipulated previously and still in progress. Currently, variable rate mortgages have a rate equal tolist of Euribor monthly, increased by 150 basis points (corresponding to 1.50%).
Conditions to be respected after granting
After the loan has been granted and disbursed, the following conditions and prohibitions must be respected:
- place the residence in the property within 12 months following the granting of the loan e maintain it for at least 5 years (this condition does not apply to soldiers and members of the police force);
- don’t sell the property being financed until the loan is repaid;
- do not rentor grant the property on free loan for the first 5 years.