Financing of real estate

If you require financing for the purchase of a property at Lake Garda, you should allow enough time for this. Often, financing a property abroad is not an easy task: your home bank may be reluctant to finance a property located abroad, while as a new client it is not always easy to find an Italian bank that will immediately support your financing plans. On top of that, there is also the language barrier.

As a foreigner not permanently resident in Italy, it is not always easy to obtain a loan from an Italian bank. In addition to a relatively high equity contribution, banks therefore often require additional insurance as security for the loan. Incidental purchase costs and expenses for possible renovation or conversion work are usually not financed by the banks when buying a property, so keep this in mind when calculating. Also take into account the processing time, which can sometimes take up to three months.

If the bank employs its own experts to evaluate the property, which then forms the basis for the amount of the loan approval, the borrower is usually charged for the appraisal costs incurred. These must be disclosed to the borrower before the loan agreement is concluded and may not be included in the calculation of the effective interest rate.

If you conclude a loan agreement that you only draw down at a later date (e.g. in the case of payment according to construction progress), commitment interest will also be charged. These are not calculated on the entire loan amount, but only on the amount still to be disbursed and usually start accruing after a few months.