Mortgages loan introduce new rates and amendments to the amortization plan
Updates made by the mortgage regulation
The Government Agency 2019 mortgages are the result of a process of updating the contractual aspects reported in the Social Institute regulation, active since January 2019. There are several changes, the most important of which is a new variable interest rate.
The new variable interest rate of Government Agency 2019 loans is equal to the 3-month installment, calculated over 365 days, increased by 200 points. From a temporal point of view, the surveys concern: March 31, June 30, September 30 and December 31.
As for the fixed interest rate, the reference system remains the LTV (Loan To Value) which relates the value of the mortgage with that of the home. We have therefore chosen to mention the options relating to the fixed rate officially reported by the National Social Security Institute.
Government Agency 2019 mortgages remain a line of credit aimed at providing an answer to the needs of members of the Unified Management of credit and social benefits. Employees hired on permanent contracts and pensioners are involved.
The amortization plan is French-style but we note an important change on the due dates : starting in 2019 they are quarterly, previously they were provided every six months.
The alternatives regarding the duration that does not vary compared to previous years remain to be indicated. The minimum interval is 10 years, but there are also options for 15, 20, 25 or 30 years. There is an exception to the general rule and it is made up of members who are at least 65 years old, in this case the Government Agency 2019 loans cannot last more than 15 years.
When is the mortgage convenient? The purposes defined by the regulation
A further element of novelty is represented by the introduction of a purpose. We are referring to the enrollment and attendance in Italy or abroad of the enrolled or a member of the family in university courses, post-graduate and Master courses, music conservatories and fine arts academies, professional training institutes, which provide legally recognized qualifications. The use is associated with a maximum amount of 100 thousand USD.
The purposes we have known in previous years remain operational:
- Purchase, construction, assignment from cooperatives of the house facing the residence. In the eventualities mentioned, the borrower can receive up to 300 thousand USD.
- The borrower can carry out maintenance, adaptation, transformation, expansion or renovation of the main home. The purpose implies a sum that cannot exceed 40% of the value of the house (no more than 150 thousand USD).
- The purchase or construction of a garage / parking space is also allowed. The economic threshold corresponds to 75 thousand USD.
Government Agency first home loan application times
The new Government Agency mortgage regulation establishes a new period relating to the submission of the application: from 15 January to 10 October. The request must be sent to Social Institute using the services offered by the official website of the Institute.