Mutual
It is a real contract and can be both free of charge and for consideration (also known as mortgage loan), which is perfected with the delivery to the borrower. It is also a typical contract whose notion is accepted in the Italian legal system by art. 1813 of the Civil Code . The case regulated by art. 1813 is exclusively that of the mortgage intended as a real contract, which ends with the delivery of the money or fungible assets, not to be confused with the financial loans, which can validly be concluded with the mere consent.
One of the most common figures in practice is the real estate loan, granted to satisfy money needs connected in some way with the purchase of real estate for sale (or, in the case of buildings, also for construction). On the day of the sale, in the presence of the buyer, seller, and bank officer, the notary publishes two deeds: the deed that transfers ownership of the property, and the deed of real estate loan between the bank and the buyer, attaching the amortization plan .
A particular form of real estate loan is the mortgage loan: it is a real estate loan with particular characteristics of duration (over 18 months) and the ratio between the loaned amount and the value of the guarantee (not exceeding 80% according to current legislation).
In application of the previous land credit regulations, land mortgages could only be granted by some (few) expressly authorized credit institutions, which carried out this activity mainly or had within them a specific Autonomous Section of Land Credit (SACF); subsequently, also in consideration of the growing presence of foreign operators on the specific market, this technical form was allowed to all financial intermediaries.
In any case, the mortgage market objectively remains heavily unbalanced in favor of lenders (generally banks), who offer their products in the form of a unilateral offer, with very little margin of negotiability on the part of the borrower regarding the economic conditions and other contractual conditions. Research and mediation between bank and customer is carried out by the credit broker . On the other hand, it is true that the streamlining of the procedures allowed the presentation of a range of products with good articulation. Being contractual, it cannot be changed unilaterally by one of the parties.
TYPES OF LOAN: THE PURPOSES
Based on the purpose, we can list six different types of mortgage:
The differences between these types of mortgage are considerable, so to choose the most suitable loan it is important to carefully evaluate the reason why we request a mortgage. For example, the purchase of the first home is a right for all Italian citizens, so the law provides for specific concessions and deductions , which are not applied to mortgages required for the purchase of the second home.
The requirements for obtaining a first home loan are also different from those required for a renovation or second home mortgage. For example, the maximum amount payable in the case of a first home loan can go up to 80% of the property value (and in particular cases even up to 100%), while for a second home mortgage it cannot exceed 60- 70% of the value of the property and the mortgage for renovation usually does not exceed 30%. In any case, the reference value for the disbursement of the loan will be the lower one between the appraisal value and the contract value.
The case of a cash loan is even more particular: it is a loan that does not have a particular purpose and precisely for this subject to more restrictive constraints.
The subrogation, on the other hand, is the transfer of a mortgage already in progress from the bank in which it was entered into another which offers improved conditions.
Finally, the renegotiation simply provides for the modification of the loan agreement, in agreement with the bank that granted it.
In short, as you can see the differences between these types of mortgage are many: inquire about each one before proceeding with your request!
HOW TO ORIENT YOURSELF IN YOUR CHOICE ..
The choice between the different types of rate depends on the position of the mortgage applicant and his personal financial knowledge. However, there are general criteria that can guide the choice.
The fixed rate is recommended for those who:
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want to know the amounts of the installments for the duration of the loan;
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want to know the total amount of debt contracted;
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want to have a fixed income;
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expects inflation to rise.
The variable rate is recommended for those who:
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expects a drop in inflation and therefore in the cost of money;
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has a medium-high income;
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is more risk-prone.
The mixed rate is recommended for those who:
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subscribes to a mortgage in a period of particular uncertainty regarding the future trend of interest rates;
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prefers not to make a final rate decision immediately;
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wants to be able to adapt the mortgage rate to future market conditions.
The capped rate is recommended for those who:
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wants to maintain the flexibility of the variable rate by limiting its risks;
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does not want to renounce the guarantee of a fixed rate without bearing the higher costs.
The balanced rate is recommended for those who:
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has a greater knowledge of the dynamics of interest rates;
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wants to customize the mortgage rate based on your preferences among interest rates;
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seeks the best balance between the characteristics of the fixed rate and the variable rate.