If you are considering the possibility of buying a property, but you do not have the necessary money to cover the entire sum, then it would be better for you to get as much information as possible about the so-called first house silent.
All the tax concessions relating to the first home loan are part of a plan launched by the Italian State from the 1980s, in order to encourage Italians to purchase properties destined to become their main home.
In reality, however, it has been several years that the aforementioned term has also been used to indicate all the houses intended for use by the taxpayer’s spouse and therefore not by the same.
For this reason it is important to clarify that a property for domestic use can be considered as a first home if it meets the following conditions: the home purchased must not fall into the luxury category; neither you nor your spouse should already have a property right on another property located anywhere in the country, since at that point it would no longer be a first home; finally, the property you intend to purchase must be located within the Municipality where you reside.
As already mentioned, the first home loan involves some facilitations, fortunately. For this reason it is important to understand the calculation mechanism on which this tax is based.
Calculation of installments and advice on first home loan
First of all, it must be said that setting up a mortgage for the first home necessarily entails setting up a mortgage on the property which will act as a guarantee for those who will grant you the mortgage.
The guarantee is essential as the lender will advance a large sum of money on your behalf in order to allow you to purchase the property. Afterwards, you will have the obligation to repay this sum through monthly installments plus interest rates, all within a few years’ time, of course.
The banking institution, however, generally finances 80% of the property’s value, but it is a percentage that in some rare cases can even reach 100% if you are able to provide truly relevant guarantees.
Currently, compared to years ago, thanks to the use of the internet it is possible to obtain much faster consultations directly from home. Once you have chosen the bank or credit institution with which you want to sign the mortgage, simply send a request by filling in the application with your personal data.
Do not forget that the data to be entered includes personal, work and income data, to which are added the data relating to the family unit and the value of the property.
Once this is done, the institution will proceed to send a first feasibility opinion, anticipating the amount of the monthly installments to be paid. The installments are usually calculated on the basis of the monthly net income received by the family and correspond to approximately 30-35% of this. At this point it is up to you that you will only have to evaluate the costs and understand if you will be able to cover them.
This will be an important decision, as you will have to really understand if you are willing to commit this sum to gradually buy what will be your main house.
If you decide to accept the conditions imposed by the institution, you will have to proceed with the sending of the documentation requested by it, which will ensure the real existence of the guarantees declared. Finally, the last step will be to proceed with the signing of the contract in the form of a public deed in the presence of the notary.
What are the facilities for the purchase of the first home
The discount for those who decide to buy their first home mainly concerns the rate of registration tax which will be 2% instead of 9%. This is limited to the case in which your seller counter part is a private individual.
The two taxes relating to the land registry and the mortgage, however, will be transformed into fixed amounts of 50 USD each. Finally, the most important facility strictly concerns the mortgage loan and more particularly the fact that the costs of turning on this will be reduced by Irpef, provided that the property purchased is used as a main residence within a year of purchase.
In this way, therefore, approximately 19% of interest expense and accessory charges will be deducted from Irpef, which include, for example, the notary fees and those relating to the expert reports carried out by the technicians of the chosen bank.
Obviously, however, the law sets, in any case, a maximum deduction to be considered when calculating interest expense and various charges. Usually, the maximum amount deducted will be 760 USD, or 19% of 4000.
First home mortgage rates and simulation
Obviously, as well as for all types of loans that are requested, to the monthly installments to be paid for the repayment of the credit it is necessary to add rates that do nothing but increase this amount.
Rates, however, can be of different types. First of all there are fixed and variable rates, which are the most requested. Choosing the fixed rate is a safer option because it is established at the time of signing the contract and remains unchanged for the duration of the loan.
The variable one, on the other hand, is calculated every year and is therefore exposed to interest rate fluctuations which could also increase the amount of the installment. Finally, in addition to these, there are also rates with caps and mixed rates, which are less frequent.
Wanting to do a simulation for the calculation of the installments, let’s imagine requesting a loan of about 150 thousand USD, with a loan duration of thirty years and a monthly frequency of the installment. The result will be that of a monthly payment of around 517 USD, considering an interest rate of 1.5%.
This, of course, is only an example in that on the internet and at the various banks it is possible to find better offers that allow you to pay off your mortgage with low installments, despite this being prolonged for longer.
Do not forget, in any case, that the amount of the installment always depends on the amount of financing requested and that this very rarely covers 100% of the entire property value. So, carefully evaluate the amount of the installments, considering all the monthly income and expenses.
First home loan: advances 2019
There are important advances for the new year regarding the first home loan taken out by young people. They will be able to take advantage of the new first home mortgage guarantee fund, a solidarity fund established by the state to provide targeted tax incentives for all young couples, always with the aim of incentivizing them to purchase their first home. This guarantee, in fact, will come into effect when the couple will no longer be able to pay the mortgage installments.
To apply, however, the applicant must fall into one of the following cases: first, one of the spouses must not exceed 35 years of age; the family unit can be made up of a single parent with minor children; young people under the age of 35 must have an atypical contract.
Remember, also, that the first home loan can be requested for renovations even in the case of young couples. The important thing, in any case, is that the property does not fall into the category of luxury goods.