A quarter of Italian banks refuse to grant mortgages to citizens with a stable salary. These results were provided by a study of mortgage loans in 155 bank branches in ten Italian cities, reports ee24.com with reference to the Italian media.
The experiment was conducted in Bari, Bologna, Brescia, Florence, Genoa, Milan, Naples, Rome, Turin and Verona. In those cities, the 40-year-old man with a permanent salary of €4,000 tried to get a loan of €240,000 to pay 80% of the house price (the total value of which amounted to €300,000). The answer of 26% of the banks was a dry "no."
Most institutions have considered such a visitor greedy, because customers usually take out a loan to cover only 60-70% of the purchase amount. Part of the financial institutions such as Banca del Mugello and ChiantiBanca asked to provide a guarantor, others refused to issue credit, as the term of payment was more than 10 years. There were organizations that considered such an income as too low.
For those who managed to get a mortgage in the Italian bank, the average rate was 3.58%, and ranged from 2.5% (at the bank of Verona) to 6% (in bank Credito Valtellinese in Milan). In addition, banks impose additional conditions: 80% of organizations asked mortgage providers to open a current account with one of its subsidiaries, others require customers to purchase their life or property insurance from fire.