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Are you looking for additional financial support to purchase a property in addition to the mortgage? It is possible to obtain a mortgage even with an existing salary-secured loan, without specific restrictions.
What is a salary-secured loan?
It is a particular type of personal loan, intended for employees and pensioners that provides for the deduction of the requested sum directly from the paycheck through the fifth of the salary mechanism, allowing a 20% share to be retained to finance the purchase installments. Furthermore, insurance is required to guarantee payment of the residual debt in the event of job loss or death of the person requesting the loan.
How does the salary-secured loan work?
The salary-secured loan allows you to receive a loan by transferring to your lender, whether an employer or a social security institution, up to one-fifth, or 20%, of your pension or salary. It is called non-finalized credit because this sum you request can be used to buy a house, but you are not required to specify in any case how you intend to spend your money. Another important thing to remember is that this type of financing has a minimum duration of 2 years and a maximum of 10 years. Furthermore, the credit institution involved in the salary-backed loan is responsible for managing the costs and charges associated with the stipulation of the loan.
Who can apply for a salary-backed loan
Generally speaking, there are minimum requirements to access the salary-backed loan application to purchase a house.
For employees, the following are required:
- a permanent contract;
- Italian residency;
- an age between 18 and 63;
the company's insurability if you are an employee of a private company.
For pensioners, Instead, the following are required:
- an age not exceeding 90 years at the time of the loan's expiry (often both companies and financial institutions limit it to 85 years)
- a pension with a minimum amount established annually by law, net of the transferable portion.
How the salary-backed loan works
Let's take an example: you've found the perfect ad and decided to buy your first home but you don't have the necessary sum to do so. With a job as an employee at a public institution you receive a salary of €1,500 per month. What you can do is apply directly to INPS for a salary-secured loan.
Your monthly payment will be €300 for a maximum term of 10 years, resulting in a net amount of €29,530 with an APR of 3.5% and an APR of 4.14%, for a gross repayment amount of €36,000. interest rates may vary depending on the lender and current economic conditions.
As with a mortgage, financing is not granted immediately. In fact, credit institutions carry out analyses on the financial situation of the person who sends the request, in particular evaluating the net monthly salary or pension, the years of seniority and the amount of the severance pay.
Is it worth buying a house with a salary-backed loan?
The most honest answer is: it depends. The salary-backed loan has a relatively low amount: if you have found a house at an advantageous price and your salary or pension is good, then the answer is yes, it could be the solution for you. The advantages of this option include the possibility of having a house free of mortgages and without the need to present guarantees; you will only have to present your salary or pension and respect the payment deadlines.
The overall bureaucratic process tends to be quicker. In particular, for public employees, the INPDAP salary-secured loan for renovation or home purchase involves a significant reduction in time compared to the many documents required for a traditional mortgage.
If the house you saw has a high value, the solution is to choose the best possible mortgage for you and your financial situation.
In this case, however, don't worry: our team at Casavo Mutui will support you in choosing the best financial product for you.
Now that you have a clearer idea of which financing is best suited to your needs, all that's left to do is find a home just how you imagine it. On the Casavo platform, there are hundreds of verified listings from the best agencies waiting for you to start planning your new life right away!
