Mortgage for young people under 36: what it is and how long it lasts

Buying the first house represents an important step in the life of many young people, but the economic and bureaucratic difficulties can make this goal complex to be achieved. To encourage access to real estate property, specific concessions and tools have been introduced, such as the Young Mortgage Under 36which offer tax and financial advantages dedicated to those who want to take this step towards housing independence.

Young under 36 mortgage: what it is

The Young Mortgage Under 36 It is an initiative promoted by the Italian government to facilitate access to real estate ownership by young people under the age of 36. This measure provides for a series of tax breaks And state guarantees aimed at reducing economic obstacles in the purchase of the first home.

Among the main benefits, there is theexemption from registration, mortgage and cadastral taxeswhich usually weigh on the buyer at the time of purchase. Furthermore, for purchases subject to VAT, a tax credit equal to the paid tax, usable in compensation. These concessions are accessible to young people with a Equivalent economic situation indicator (ISEE) not exceeding 40,000 euros per year.

Further support is offered by First home guarantee fundwhich provides one State guarantee up to 80% of the capital share of the mortgage, facilitating the obtaining of funding even in the absence of consistent property guarantees. This guarantee is particularly useful for young people who could encounter difficulties in accessing credit due to atypical or income employment contracts.

The concessions have recently been extended to 31 December 2027offering an prolonged period to benefit from these measures. It is important to underline that the property purchased must be intended for first home and must not fall within the cadastral categories of luxury (A1, A8 and A9).

How the subsidized mortgage for young people works

The subsidized mortgage for young people Under 36 works through a combination of tax benefits And state guarantees which make the purchase of the first home more accessible.

First, theexemption from registration, mortgage and cadastral taxes It significantly reduces the initial costs related to the purchase of the property. For purchases subject to VAT, the tax credit Recognized allows you to recover the amount of VAT paid, further alleviating the tax burden.

As for the loan, the First home guarantee fund intervenes by offering a State guarantee up to 80% of the capital share of the mortgage. This means that, in case of insolvency, the state takes on a significant part of the debt, reducing the risk for the credit institution. As a result, banks are more likely to grant mortgages even to young people with Atypical employment contracts or lower income.

Furthermore, thanks to these guarantees, it is possible to obtain mortgages with a Loan to Value (LTV) high, reaching up to 100% of the property valuethus allowing the purchase of the house without the need for a substantial initial capital.

To access these concessions, one must present a ISEE declaration which certifies an annual income not exceeding 40,000 euros and does not have other residential properties. The application for the subsidized mortgage can be submitted directly to the credit institutions participating in the initiative, which will submit the request to the guarantee fund.

It is advisable to compare the different offers on the market, carefully evaluating the conditions proposed by the various banking institutions, in order to identify the most suitable solution to your needs. In addition, it is appropriate to consider that although the guarantee fund covers a significant part of the mortgage, banks may require further guarantees or the stipulation of insurance policies to protect the credit granted.

What is and how the guarantee fund for the mortgage on the first house works

The Guarantee Fund for First House Mortgages It is an initiative promoted by the Italian State to facilitate access to real estate credit, in particular for the purchase of the first home. Managed by Consap spa (Public insurance services dealership), the Fund offers a state guarantee partial coverage of the mortgage loan required for the purchase, renovation or energy efficiency of the first home.

Fund operation:

  • State guarantee: the fund provides a guarantee until80% of the capital share of the mortgage, facilitating the obtaining of the financing by subjects who may not have sufficient guarantees of their own.
  • Maximum amount of the mortgage: the guaranteed mortgage can have a maximum amount of 250.000 euros.
  • Priority categories: The Fund gives priority to specific categories, including young couples, monogenitoric families with minor children, young people under 36 and conductors of accommodation owned by autonomous institutions for public housing.
  • Requirements of the property: the house must be located in Italy, intended for first home and not belong to the cadastral categories of luxury (A1, A8, A9).

Procedure for access to the Fund:

  1. Choice of the credit institution: the applicant must contact a bank or a financial intermediary who joins the guarantee fund.
  2. Presentation of the application: The request for access to the Fund is submitted directly to the credit institution, filling in the appropriate forms and providing the necessary documentation.
  3. Bank evaluation: the credit institution evaluates the solvency of the applicant and, in the event of a positive outcome, forwards the question to the fund manager.
  4. Approval of the guarantee: Once the approval from the fund manager has been obtained, the bank proceeds with the disbursement of the mortgage with the agreed conditions.

It is important to underline that, although benefiting from the state guarantee, the credit institution maintains the right to evaluate the concession of the mortgage according to its internal policies and the evaluation of the credit merit of the applicant.

What are the necessary requirements

To access the Young Mortgage Under 36it is essential to meet specific both personal and property requirements to buy.

Personal requirements:

  • Age: The applicant must be less than 36 years old in the year in which the purchase act of the property is stipulated.
  • Economic situation: a Equivalent economic situation indicator (ISEE) not exceeding 40,000 euros per year.

Requirements of the property:

  • First home: the property must be destined to first home and must not belong to the cadastral categories of luxury, namely A1 (Signorile houses), A8 (villas) and A9 (castles and buildings of eminent historical or artistic value).
  • Location: the property must be located on the Italian territory.

It is important to note that the applicant must not have other residential properties at the time of the request, unless they have been acquired by succession mortis causa and are in use free of charge to parents or brothers.

How to request young mortgage

To request the Young Mortgage Under 36it is necessary to follow a procedure divided into different steps:

  1. Verification of the requirements: Make sure to meet all personal and economic requirements, such as the age of 36 years and an ISEE not exceeding 40,000 euros.
  2. Research of the property: identify a property that respects the planned criteria, intended for first home and not belonging to the cadastral categories of luxury.
  3. Choice of the credit institution: contact a bank or a financial intermediary who joins the First home guarantee fund managed by Consap.
  4. Preparation of the documentation: collect the necessary documents, including:
    • Identification And Tax ID code;
    • ISEE certification valid;
    • Documentation relating to the propertysuch as compromise or preliminary sales;
    • Income documentationas payroll or tax return, to certify the mortgage reimbursement capacity.
  1. Presentation of the application: fill in and submit the mortgage request to the chosen credit institution, attaching all the required documentation.
  2. Bank evaluation: the credit institution will carry out an assessment of the credit merit of the applicant and the property. In the event of a positive result, the bank will in addition to the request to First home guarantee fund to obtain the state guarantee.
  3. Signing of the mortgage: once the request is approved, proceed with the stipulation of the mortgage contract and the finalization of the purchase of the property.

Until the subsidized mortgage under 36 can be requested

The concessions for the purchase of the first house intended for young people under 36 were extended to 31 December 2027. Therefore, young people who meet the required requirements can apply for the subsidized mortgage by that date.

It is essential to comply with these deadlines and requirements to be able to benefit from the expected concessions, which include tax exemptions and access to the warranty fund for first home mortgages.

It is recommended to periodically consult the official sources or contact a financial consultant to stay updated on any regulatory changes or extensions of the facilities.