Owning in Italy
Paying the mortgage down, or moving it
What a part repayment does to the instalment, the months and the interest left, and what moving the mortgage to another bank’s rate does, from your bank’s own schedule.
Your mortgage now
From the bank’s amortisation schedule or your last statement.
Instalments still to pay.
Paying part of it now
Leave it empty to look only at moving the mortgage.
Moving it to another bank
The rate on the other bank’s PIES. Leave it empty to look only at the repayment.
Type what is still owed, the rate and the months left to see the figures.
- No penalty for repaying early, in full or in part, a mortgage taken to buy or renovate a home: a clause that says otherwise is void (art. 120-ter TUB). It applies to mortgages from 2007; an older one may carry a reduced penalty.
- Moving the mortgage to another bank costs you nothing: no fee, commission or notary cost (art. 120-quater TUB).
This is arithmetic on your schedule, not advice. Your bank’s figures are the ones that count; ask it for the updated schedule.
D.Lgs. 385/1993 (TUB) art. 120-ter, art. 120-quater, art. 161 c. 7-ter; c.c. art. 1202.
A lower instalment or fewer months
With €150.000 still owed at 3,5% and 240 instalments left, the instalment is €869,94 and €58.785,60 of interest is still to pay. Repaying €20.000, the bank can keep the months and lower the instalment to €753,95, with €50.948 of interest, or keep the instalment and finish in 197 months, with €40.988,67 of interest.
A mortgage taken to buy or renovate a home carries no penalty (art. 120-ter TUB). Which of the two applies is in the contract: ask the bank before you pay.
Moving the mortgage
Moving the mortgage to another bank costs you nothing (art. 120-quater TUB). With the same €150.000 and 240 months, a rate of 2,8% brings the instalment to €816,96: €52,98 less a month and €12.715,20 less interest.
Questions people ask
- Is there a penalty for paying early?
- No, on a mortgage a person took from 2007 to buy or renovate a home: a clause saying otherwise is void. An older mortgage may carry a reduced penalty.
- Lower instalment or shorter term?
- The calculator shows both: keeping the instalment and shortening the term cuts the interest more, lowering the instalment leaves more room each month. The bank says which your contract applies.
- Does moving the mortgage cost anything?
- No: no fees and no notary costs for the borrower (art. 120-quater TUB).
- Where do I find what is still owed?
- In the bank’s amortisation schedule or your last mortgage statement.