An extension of the 80% state guarantee on the principal payment of mortgages for those under 36 is in approval. As part of converting the Public Entities Decree into law, an amendment was approved to postpone from June 30 to Sept. 30, 2023, the deadline for submitting applications for accessing the First Home Guarantee Fund. The measure, after approval by the House of Chamber, will be sent to the Senate for conversion into law by July 9th, 2023. We Wealth spoke with Nicoletta Papucci, marketing director of MutuiOnline.it, to map out all the measures aimed at supporting young buyers, and give us insightful details on those banks which offer the most competitive fixed- and variable-rate terms.
“The Draghi government in June 2021, supporting the Bis decree, introduced a series of measures to support those under 36 with an Isee of less than 40,000 euros in the purchase of their first home,” Papucci says. “These are both measures that allow users access to credit and tax deductions on the taxation applied to the purchase.” Similarly, another measure put in place allows for greater access to young homebuyers to credit by introducing an 80% state guarantee on the purchase price of the property. According to a scheme created by the new executive “after the increase in rates by the European Central Bank had basically paused the initiative in May 2022” currently, it is possible to apply for the guarantee until June 30, Papucci recalls, but “in the coming weeks the extension of the deadline to September 30 should pass in the House, within the Omnibus Decree.”
Mortgages under 36: full tax exemption
“In addition, total tax exemption for the purchase of real estate has been introduced (confirmed through 2023 by Law 197/2022, ed.),” the expert adds. Individuals who have not yet turned 36 years of age in the year of the deed and with an Isee of less than 40 thousand euros, at the act of purchase and sale can, in fact, enjoy an exemption from registration tax and mortgage and cadastral taxes, and a tax credit equal to the amount of VAT paid (if due). Moreover, in relation to the act of financing, they can benefit from an exemption from substitute tax, equal to 0.25% of the total amount.
Youth mortgage: who offers the best terms
In the simulation provided by MutuiOnline on real market data, assuming that a 33-year-old employee intends to take out a mortgage for the purchase of a first home. Initially, the amount of the mortgage, with a term of 20 years, is 140 thousand euros and the value of the property is 200 thousand euros. Opting for the fixed rate, offering the best conditions according to MutuiOnline are Credem (with which the monthly installment would be around 798 euros for the entire duration of the loan), Crédit Agricole Italia (806 euros), Bnl – Gruppo Bnp Paribas (816 euros), Banco Bpm (818 euros) and Bper banca (827 euros). In the case of a variable-rate mortgage, the best initial installment for a mortgage taken out today is offered by Bcc Milano (837 euros), followed by Ing (856 euros), Bper Banca (863 euros), Crédit Agricole Italia (864 euros) and Banco Bpm (881 euros).
In the second step, we assumed that the amount of the 30-year mortgage is 250,000 euros and the property value is 500,000 euros. In this case, the most competitive monthly installment in the case of a fixed-rate mortgage is offered by Crédit Agricole Italia (1,103 euros for the entire term of the loan), accompanied on the podium by Banca Widiba and Bnl – Gruppo BNP Paribas (1,123 euros in both cases) and Banco di Desio e della Brianza (1,134 euros). For variable-rate mortgages, Banca Popolare Pugliese offers the best initial installment (1,245 euros), followed by Banca Widiba (1,270 euros) and Intesa Sanpaolo (1,282 euros).
Green mortgage, how does it work? “The most convenient offer depends on the applicant’s specific needs,” Papucci states. There are offers dedicated to young people with a state guarantee at a fixed or variable rate, with a duration of up to 40 years, and also benefits related to green purchases. In particular, the latter allows an additional rate discount for those who are buying a property with an energy class higher than B or a lower class where they plan to carry out a renovation that makes the jump of at least two energy classes. For each of these cases, the most competitive terms are offered by
a different bank, the expert continues. “At this time, with rates no longer at historic lows, it has become even more important to carefully analyze the offers on the market and find the one best suited to your situation through comparison” Papucci concludes.
