How Italian banks assess a mortgage application

What the law requires

Art. 120-undecies of the Testo unico bancario (TUB, the consolidated banking act), in the text in force from 10 January 2026, sets the duty. Before the credit contract is concluded the lender makes an in-depth assessment of the consumer’s creditworthiness, taking account of relevant factors to verify the prospects that the consumer will meet the contract’s obligations. The information comes from you, including through a credit intermediary, and the lender may ask for clarifications where needed.

Several consequences follow from the text.

• The lender must check, not just take your word. The law says the information must be opportunamente verificate (duly checked).
• A later error is not your fault. The lender may not terminate the contract, or change it to your disadvantage, because its assessment was done wrongly or because the information you gave was incomplete, unless you deliberately left things out or gave false information.
• A large later increase needs a new assessment. Before significantly raising the total credit after signing, the lender reassesses on updated information.
• A refusal must be communicated. When an application is rejected the lender informs the consumer without delay.
• Written policy. Lenders must draw up and document a policy for offering credit, including the kinds of rights and property on which a mortgage can rest.

Legislative Decree 212/2025, in force since 10 January 2026, touched this chapter. Under its article 6, lenders and credit intermediaries must adapt by 20 November 2026 or, if later, within 90 days of the Banca d’Italia’s implementing rules; the same article keeps consumer credit contracts signed before that deadline under the earlier provisions. Ask your lender which version applies if you sign near that date.

What lenders look at

The Banca d’Italia’s guide lists what a file usually contains, noting that each lender has its own procedures.

The lender’s Foglio contenente le Informazioni generali (general information sheet) must say which information and documents you need to supply and by when. Art. 120-novies also requires a warning that credit cannot be granted if the assessment is impossible because you chose not to provide the information needed.

The property and the 80% limit

The usual security is a mortgage charge (ipoteca) giving the lender the right to have the property sold if you cannot repay. The property is valued by an independent appraiser (perizia). Art. 38 TUB leaves to the Banca d’Italia the setting of the maximum loan relative to the value of the mortgaged property. The Banca d’Italia’s guide states the working rule: the amount granted does not exceed 80% of the appraised value, on top of the creditworthiness check. Some lenders go above 80%, but then ask for more guarantees and often apply less favourable terms. A common extra guarantee is a fideiussione (a guarantee by a third person who answers for the whole debt with their own assets).

Calculation, not a quote: if the appraisal is €250,000, 80% is €200,000, so a purchase price above the appraisal widens the gap you must fund yourself. The appraisal, not the price you agreed, drives the cap.

The credit register

Lenders consult the Banca d’Italia’s Centrale dei Rischi (credit register), which records loans above €30,000 reported by lenders, and any loan, whatever the amount, once a customer is classed as “in default” (sofferenza). Private credit information systems, such as CRIF, also hold records. You can see what the Centrale dei Rischi holds under your name free of charge, and the guide says online access is quick and secure. Late payments of more than 30 days trigger information duties for the lender, and a serious default marks you in these systems and can compromise future credit.

Income, instalment and loan size

The guide advises working out your monthly disposable amount after ordinary expenses and keeping the instalment at no more than about one third of it, to withstand unexpected costs and income falls from illness, accident or dismissal. Lenders’ own ratios are not set by a source read here. For the working-out, see how much can I borrow.

Your timeline

1. You give the information the lender needs; it then must give you the personalised PIES (standard European information sheet) promptly and in good time.
2. The lender may then make a binding offer, which must include the draft contract.
3. You then have at least seven days to compare offers; the offer binds the lender throughout and you may accept at any time (art. 120-novies).

The Banca d’Italia also reminds you that the rate at signing may not exceed the usury threshold, based on the average global effective rate published each quarter; a usurious clause is void and no interest is due.

Which professional to consult

A mortgage broker can package your file, but check how the broker is paid. A surveyor can explain the technical side of a valuation, and a notary certifies the legal status of the property and prepares the deed.