How the payment is calculated
Almost all Italian home loans use French amortisation: the payment stays the same for the whole term (with a fixed rate), mostly interest at the start and mostly capital at the end. It depends on three numbers: amount, annual rate and number of payments.
For example, €150,000 at 3.5% over 25 years means a payment of €750.94; over 300 payments you repay about €225,000, of which €75,000 is interest.
How much you can borrow
Italian banks usually lend up to 80% of the property value and look at the payment-to-income ratio: many treat about a third of net income as the limit. Non-residents can get a mortgage in Italy too, usually with a lower loan-to-value and more documents.
The rest of the price, plus taxes, notary, agency fee and mortgage costs, comes from your own funds: see the home purchase costs breakdown.
For information only. Thresholds and figures reflect common practice and are only examples: each bank applies its own criteria, and the real terms are those in the offer.
Frequently asked questions
How much is a €150,000 mortgage per month in Italy?
At 3.5%, about €870 a month over 20 years, €751 over 25 and €674 over 30.
Can foreigners get a mortgage in Italy?
Yes, both residents and non-residents, usually with a lower loan-to-value for non-residents and proof of income from abroad.
What is the difference between TAN and TAEG?
TAN is the nominal rate used for the payment; TAEG (APR) also includes the costs and is the figure to compare offers.
Sources
French amortisation formula; Banca d'Italia, guide “Comprare una casa. Il mutuo ipotecario in parole semplici” (in Italian). Rules updated on 6 November 2026.