Buying a home is never easy, in fact there are very few people who can get enough cash to pay for it all at once . For this reason we usually ask for financial help from banks that anticipate a part of the cost of the building. This loan will then be returned by installments with a predefined interest rate . The sum paid, in ordinary cases, does not go beyond 80% of the total cost of the home but there is a very special case in which it is possible to obtain a 100% advance payment .
The 100% mortgage was introduced at a time when the brick market was much more active than the current situation to help young people and people in need to build or buy a house.
How does the 100% mortgage work?
The inter-ministerial credit and savings committee has established that the loan granted by a bank for the purchase of a property must not go beyond 80% of the value of the same except for special cases. Financial institutions are generally very reluctant to grant loans of this type because those who do not have the ability to save usually do not offer good guarantees of respecting long-term payments. In fact, the clauses are much stricter than traditional cases . First of all, the applicant must have an open-ended contract of a certain type. In general, the concession is simpler in cases of couples made up of two employed persons.
Secondly, it is necessary to open a surety to cover a 20% share of the loan . The interest rate is heavier than that of a classic loan. The surplus can go from a minimum of 0.20%, in the most convenient cases, to a maximum of 0.50%. In any case, the monthly payment can not exceed 30% of the salary but the payment could be extended for a considerable period of time.
Because banks are interested in making 100 per 100 mortgages
Credit institutions offering loans of this type run far greater risks than traditional cases but are able to protect themselves effectively thanks to interest rates. The applicants should in fact calculate the rates in the period just before the end of the loan or count the total sum of the same. This funding could therefore appeal to those who find it difficult to save money but it will turn out that the value paid at the end of the loan is much higher than that of the building itself.
Which banks grant it
- The Bper Bank requires a spread increase of 0.80%.
- Banca Intesa San Paolo maintains an average spread but only grants this loan to young people under the age of 35. The duration of the payment can last up to 40 years.
- MPS grants a solution for young couples but in this case the spread increases according to the duration (from a minimum of 3.35% to a maximum of 3.85%).
- The BNL bank dedicates this type of loan to young people but the only benefit is the discount of 20% for ancillary costs.
- Cariparma offers the “Grand 100% mortgage” with a taeg equal to that of other loans (which do not exceed 80%) but which in any case is quite high.
The right solution
To find the best solution for your situation you can use sites that compare all the options on the market and then compare two or more quotes. Alternatively, you can always think of saving and applying for a classic mortgage with significantly lower interest rates.