Government Agency mortgages loan: Here are the new interest rates 2019
In addition to the loans and mortgages offered by the main Cream banks and the major national credit institutions, the subsidized loans on the economic market also include Government Agency mortgages, which have already offered excellent offers and new rates since the beginning of 2019 of very advantageous interest.
Public sector employees found themselves faced with a series of facilitated conditions, especially for the purchase of non-luxury real estate units, to be considered therefore as the main home.
The Government Agency management, starting from 2011 with the regulations of the Save Italy Decree established by the Monti government, has been merged with Social Institute and for some years the two institutes have come under the same sphere of competence.
It is these offices that regulate the facilitated conditions for Government Agency loans, and the possibility to modify and renegotiate also the conditions and interest rates of the old mortgages.
The new Government Agency mortgages
Therefore, civil servants have the possibility to apply for new mortgages as well, provided that they are registered in the management of active civil servants or if they have been retired for at least a year.
The concession also applies to employees who have entered into an open-ended public employment contract. Among the other requirements, it is very important to verify that none of the applicant’s family members own other houses within the national territory.
The maximum payable amount for those who intend to buy a house is 300 thousand USD, a figure that can be returned by choosing between various options and a period of between 10 and 30 years. For those who intend to carry out renovations, a loan of a maximum amount of € 150 thousand is envisaged.
For the purchase of parking spaces or garages, the sum is reduced to 75 thousand USD. The interest rates applied can be fixed or variable. In addition to the conditions for the purchase of a new property, the Government Agency loan can also be granted to those who intend to carry out building renovation, maintenance or transformation works on the only house they own.
Another intended purpose concerns the purchase of a parking space or garage for the parking space used as a property of the home owned.
First home with Government Agency mortgage
If you choose to apply for the Government Agency mortgage for the purchase of your first home, you must necessarily follow a series of rules and make your request according to the provisions dictated by Social Institute.
To request it, you do not need to be the owner of other properties. Once the forms have been completed and the request has been sent, the applicant who obtains the mortgage will receive all the forms at home and subsequently will have to buy the new house and establish the new residence for at least 5 years.
However, there are hypotheses in which, if additional funds are available, a property owner can still apply for a mortgage. The important thing is that the home must be located at least 150 km away from the property for which the mortgage is requested and must be located in a municipality other than that of residence.
Mortgage rates set by Social Institute
The Social Security Authority, therefore, in addition to managing the requests and disbursements of Government Agency mortgages, also deals with the decisions regarding the interest rates applied to the mortgages and loans granted.
In particular, in the last year the interest rates applied to mortgages have been defined with a presidential determination that established a series of rates based on the LTV method also called loan to value, which defines the change in fixed rates based on the ratio between the mortgage and the value of the property being mortgaged.
In this way, therefore, the TAN varies according to the percentage of intervention and the expected period. Going to read the values shown in an example table of the rates said in 2019, it can be read that, for example if we consider a 10-year mortgage we can obtain a rate that is between 1.15% and 1.73% a depending on the percentage of intervention that varies from 50 to 80%.
Looking at the higher rates, for a 30-year mortgage the rate is between 1.97% and 2.65%. Alternatively, a variable rate can be chosen which can be defined on the basis of the 6-month USD value, increased by 200 basis points.
How to start the application
To send the application, you must refer to the Social Institute and register on the website by entering the appropriate device PIN that can be requested at the Social Institute counters or online through a telematic procedure.
The drafting of the mortgage application is made online through the information on a special dedicated form and must necessarily be complete with all the required documents.
The request is sent electronically on pre-established dates. Applications are received from 1 to 10 January, from 1 to 10 May and from 1 to 10 September.
Subsequently they will be evaluated and if they meet all the criteria and meet the requirements of the regulation, they will be accepted. It is important to accompany the request with all documents and be sure not to omit anything, as incomplete applications will be rejected.
If the funds available are not necessary to satisfy all the requests made, a ranking will be drawn up.
An e-mail address will be indicated in the application, and all communications from Social Institute will take place via the address indicated in the application.
Subrogation and renegotiation of the mortgage
In addition to the possibility of applying for a new Government Agency mortgage, retirees or civil servants, if they have already taken out a mortgage with another bank, can subrogate and transfer their bank loan to an Social Institute / Government Agency mortgage.
To achieve this portability, you must always have all the required requirements and be in compliance with all the contributions payments.
Among the possibilities proposed by Government Agency, there is also the possibility of renegotiating the conditions of a loan already made. The important thing is to have the registration with the Social Credit Management and, as in the previous cases, you must always be in compliance with the contribution payments.
The advances for 2020
Looking ahead to the next half year, the news regarding Government Agency mortgages for next year is already on the horizon.
For those who intend to wait a few more months and wait for 2020, new perspectives are emerging. Among the innovations introduced for the new year, the possibility of obtaining small short-term loans, probably one to three years, is coming soon.
These loans will allow obtaining small amounts equivalent to a monthly salary and therefore the possibility, for public pensioners or for permanent employees Government Agency, to have liquidity over time and month by month for the payment of utilities, administrative costs and ordinary.