Acquisto e ristrutturazione: cos'è e come funziona

The purchase and renovation mortgage is a type of mortgage which, with a single loan, it gives you the liquidity to buy a house to renovate and carry out the necessary works. 

This mortgage is essentially divided into two parts: a portion intended for the purchase of the first home, the other intended for the payment of the works. The first part is calculated on the basis of the value of the property, while the calculation of the second part is based on the estimate of the works.

The disbursement of the loan takes place in various phases: at the time of purchase and based on the progress of the work.

Young people under 36, the 2023 mortgage suitable for them

Banks pay special attention to customers under 35 who intend to purchase a property to renovate. The duration of the mortgage can vary depending on the bank and the specific conditions of the operation, but is usually around 20-30 years.

Each bank has its own specific conditions and requirements for accessing a mortgage for the purchase and renovation of a first home for young people. Usually, to access this type of financing you must be under 35 years old, do not already own a home and present a detailed renovation project.

Mortgage 100 for purchase and renovation: how is it obtained?

The 100% mortgage for purchase and renovation allows you to finance the entire amount necessary for the operation. In this way, it is not necessary to have a sum of money available to purchase the property and then request a further loan for the renovation.

However, these types of mortgages are difficult to obtain because require very high financial solvency and present a high risk for the bank providing the loan.

In Italy, some banks offer 100% mortgages for purchase and renovation, but these offers are usually reserved for customers who have a high income and a stable job position. Additionally, mortgage terms may be more onerous than those of a traditional mortgage, with higher interest rates and tighter collateral.

Mortgage for purchase and renovation in a single solution

The purchase and renovation loan can be requested for an LTV (loan to value of the property) of up to 80 percent of the total market value of the home after renovation. For interventions that are not excessively expensive, the disbursement can also take place in a single solution. This is done to prevent the loan amount from becoming too burdensome for the borrower, which is why, in the case of major interventions, the disbursement takes place in several tranches. The works must be completed within 18 months, which coincide with the mortgage disbursement times.

Mortgage for purchase and renovation of first home deduction

The purchase and renovation mortgage also allows for tax deductions. If it is a loan for the first home, it is in fact possible, as always, to deduction of interest expense and charges at the rate of 19%, which must be divided according to the portion of the loan intended for the purchase and financing of the works. Renovation can also benefit from government incentives such as the restructuring bonus, which allows the deduction of half of the costs allocated to the interventions. To benefit from the deductions, the mortgage must have been stipulated in the six months prior to the start of the works or within 18 months of their start. The property will be used as a first home within six months of the completion of the works.

How to request a purchase and renovation loan

To request a mortgage for purchase and renovation, various documents must be added to the normal documentation aimed at disbursing the loan depending on whether they are:

• Ordinary maintenance of existing buildings (for example to repair limited parts of the building): in this case the cost estimate provided by the company involved must be presented to the bank.

• Extraordinary maintenance: for interventions on the structure of the building it is necessary to present both the estimate and the project, as well as the DIA or SCIA.

• Renovation with major works: for interventions that modify the layout of the building (extensions, etc.), a building permit is required with the payment of a contribution. Both documents must be added to the bank loan application.

In general it is necessary to present

• the cadastral survey;
• the certificate of suitability;
• property valuation by an expert;
• the works project;
• the estimate of the cost of the works.

Is a home loan better or home loans plus renovation?

Taking out a purchase and renovation loan may be a better option than first requesting a purchase loan and then a loan to renovate your home. Here are the main advantages (which obviously vary case by case):

• interest rates: it may be better to ask for the same rate for both loans since asking for them at different times could imply an increase in interest rates for one of the two.
• timing: a home plus renovation loan certainly saves time in obtaining liquidity.
• costs of procedures: you save the costs of opening two different mortgage procedures.

Mortgage for purchase and renovation of second home

The mortgage for purchase and renovation can be useful even for a second home. 

This type of mortgage is offered by banks and credit institutions, but the financing conditions may be different from those of a first home mortgage. Generally, banks grant loans for the purchase and renovation of a second home at higher interest rates compared to first home mortgages and with a lower financing percentage.