Home Mortgage Loans: Rates, Calculation, Simulation and Income Purchase House

If you are thinking about buying a property, but do not have the amount necessary to cover the entire amount of its price, then it will be useful to have some information on the so-called ” Multifirst home Mortgage “. The Multifirst home Loan and the related tax breaks are part of a project initiated by the State since the 1980s in order to encourage the purchase by taxpayers of real estate to be used as a main residence.

In fact it has been for several years that the notion of “Multifirst home” is understood in a broad sense to indicate those properties not necessarily destined to the home by the tax payer-buyer, but also by a relative (including the separated spouse, but not divorced, as well as all relatives within the third degree and the like within the second). So that we can talk about the first house and you can take advantage of the benefits provided by law (which we will see shortly), it is necessary that the following conditions are met :

  • the dwelling for the purchase must not be “luxury” (qualification linked to the cadastral category to which it belongs)
  • neither you nor your spouse in communion must already be the owners of property / dwelling / use / usufruct / bare ownership of another property located in the same Municipality where the one for purchase is located, or other property placed anywhere in the national territory acquired by taking advantage of facilities on the first house
  • the property to be purchased must have location in the Municipality of your residence or in the Municipality in which you count to establish your residence in the 18 months following the purchase.

Advice and calculation of installments

The mortgage on the first house entails the establishment of a mortgage as a rule on the property for sale, to guarantee the institution involved, which anticipates the payment of a substantial sum of money in your favor, provided that you provide the repayment, with interest, over a period of several years. As a rule, the banking institution finances up to 80% of the value of the home, a percentage that can be raised, in some cases, up to a maximum of 100%, provided that you are able to provide significant guarantees.

In the digital age, evaluations related to the conclusion of a loan contract are much easier than once: once you have identified the bank you wish to support, you can get a valid advice directly from your home computer, by entering in the appropriate fields of your mortgage application your personal details, your work situation and your income, as well as data on the composition of your family and the size and value of the property.

At this point, the bank will forward you a first ” feasibility opinion “, defining in principle the amount of monthly installments that you will have to pay. Usually, each installment tends to settle on a value equal to 30-35% of that of the net income received monthly from you and your family. At this point you come into play: informed about the calculation of the value of installments, you will have to assess whether you are able to bear the costs. Make a local mind about your monthly income and income, and subtract the second to the first: the amount you get will give you information about the potential savings potential of you and your family. You must decide carefully whether you are willing to commit this sum (or substantial part of it) in the “gradual” purchase of your main house.

If you opt for the acceptance of the project proposed by the financing agency you have chosen, you will have to attach the required documentation and, after ascertaining the existence of the necessary guarantees, you can proceed with the signing of the contract (assisted by a notary) in the form of the public instrument.

Facilitations on the purchase of the first house

Limited to the hypothesis in which your seller counterpart is a private individual and if you proceed with the purchase of a Multifirst home, the rate of registration tax will be facilitated and will amount to 2% instead of 9%. The mortgage and cadastral tax will correspond to the fixed amount of 50 euros each. The facilities strictly linked to the activation of the mortgage loan concern the possible reductions from the Personal income tax and are achievable on condition that you use the property purchased as a main residence within one year of purchase.

If you conclude a loan agreement for the purchase of even the bare ownership of a property qualifiable as a Multifirst home, you will see deducted from Personal income tax 19% of the interest expenses and ancillary charges borne by you (including, for example, expenses notary fees and costs related to the bank’s expertise). You must keep in mind, however, that the law sets a ceiling for the interest expense and accessory charges to be considered for the purpose of deduction, which amounts to 4000 euros. The maximum amount that you will see deducted from the Personal income tax will therefore be equal to 760 euros, 19%, in fact, of 4000.

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