Inflation and geopolitical tensions have put an end to the grace period of recent years on the mortgage front, and it looks like cheap mortgages in Italy are becoming a think of the past. Interest rates on mortgages in Italy and across Europe are rising; in the face of this development, what is therefore the most advantageous choice for those turning to the mortgage market to buy a home? Let's have a closer look at Italian mortgage rates 2022 and find out is it better to get fixed rate or variable?
Euribor and Eurirs, the trend in Italian mortgage rates
According to an analysis by Telemutuo, the rise in mortgage interest rates is generating tangible effects on the cost of mortgage financing following the rise in the IRS rate, the indexation parameter to which fixed-rate mortgages in Italy are pegged, determined by the EBF (European Banking Federation). In just one year, the 15-year IRS indicator, which determines the cost of loans of the same duration, quadrupled from 0.45% in May 2021 to 1.80% today. The situation is different for the Euribor, the interbank reference rate for variable-rate mortgages, which continues to remain pegged at negative levels for the time being.
Fixed-rate or variable-rate mortgage in Italy, which is better?
"The factors to consider when choosing between a fixed-rate and variable-rate mortgage are numerous, from the general political-economic scenario, to the borrower's income situation, to his or her risk propensity," explained Angelo Spiezia, managing director of Telemutuo. "The indication is that a fixed rate guarantees a constant instalment over time for those who want greater economic-financial peace of mind, while a variable rate allows the more daring to take advantage of market fluctuations."
In general, according to the analysis by Telemutuo's experts, a fixed rate mortgage in Italy, which at the moment can reach cost levels of between 2.5% and 2.8%, is still a convenient choice, especially in the case of mortgages with a large value and long duration. If it is true that a variable rate offers a lower monthly instalment in the immediate term, it is also true that one should take into account the uncertainty regarding the future evolution of interest rates, which could represent a nasty surprise, especially in a medium to long term scenario. A good compromise could be to opt for mortgages with a fixed instalment or with a cap (maximum ceiling), capable of protecting the borrower from possible excessive rises.
The best bank mortgage offers in Italy
In addition to comparing fixed and variable rates, it is a good idea to analyse the varied offer of mortgages available in Italian banks in order to choose the product most in line with your needs.
From Italy's mortgage for first time buyers with improved conditions, to mortgages for those who intend to buy an energy-efficient home or renovate an old flat, improving its energy performance, there are a wide range of home loans in Italy for all sorts of scenarios.
- For more information on mortgages in Italy and all the best offers from Italian banks, check out idealista/mutui where you'll also be able to find out how much you could borrow with the idealista mortgage calculator.
- Check out our guide regarding Italian mortgage rates for non-residents
Ideas for renovating your home in Italy: tips and inspirations for every need
Buying a home in Italy and renovating it to suit your family's needs is a decision that should never be taken lightly. It’s all too easy to go from feeling overwhelmed to achieving complete satisfaction. This is because navigating the right approach to managing the renovation process without losing your sanity can be challenging. In this guide, we’ll offer simple ideas for renovating your home, breaking down each step you can take to turn your house into the home of your dreams.
How much money do you need to live comfortably in Italy?
Have you ever dreamed of settling down in the picturesque Tuscan countryside? Maybe you’re considering a career change with some of Milan or Rome’s top companies? Or perhaps you just want to spend your days sipping espresso and strolling through the ancient streets of Rome.
The Italian cities with the worst air quality according to Legambiente
The year 2030 is fast approaching, marking a significant shift in environmental sustainability within EU member states. Yet, according to Legambiente, there is still much to be done in Italy. The Mal'Aria 2025 report lists the worst Italian cities for air quality, identifying 25 cities that exceeded the legal limits for PM10 over the past 12 months. Here’s the list.
Flight bonus for Sicily and Sardinia in 2025: who Is eligible?
2025 brings good news for residents of Sicily and Sardinia, who will receive financial support to counter rising flight costs. In both regions, this bonus is becoming a permanent measure and includes a refund that varies depending on the region of origin and specific eligibility criteria. Let’s explore the details of this initiative and all the updates for the new year.
Do solar panels work in winter?
Will solar panels work in winter? This recurring question not only has an answer but is also accompanied by a series of tips to improve the efficiency of photovoltaic technology during the winter months. Experts from ENEA (Italy's National Agency for New Technologies, Energy and Sustainable Economic Development) have released a statement detailing various measures and good practices to adopt during the coldest season to maximise the performance of photovoltaic systems. Let’s find out more.
Tax incentives for foreign buyers in Italy
Italy has long been a dream destination for individuals seeking a blend of culture, cuisine, and scenic beauty. Beyond its lifestyle appeal, Italy offers a range of tax incentives for foreign buyers, making it an increasingly attractive location for international property investors. These incentives are particularly appealing to high-net-worth individuals and expatriates, offering substantial tax benefits and regional advantages.
