Moving your mortgage to another bank (surroga)

What the law says

The rules are in art. 120-quater of the Testo unico bancario (TUB, the consolidated banking act), in force in this form since 19 December 2012. The Banca d’Italia’s mortgage guide (version updated to February 2026) summarises them in plain words: you can move the loan “at any moment” to another lender, without cost or penalty, using the money granted by the new lender to extinguish the old mortgage while keeping the original charge on the property.

The article’s main points, in order:

• No obstacle from the old lender. Subrogation is not precluded by the fact that the debt is not yet due or by a term agreed in the lender’s favour. Any clause, even one agreed later, that prevents the debtor from using the right or makes it costly is void, though the loan contract itself stays valid (paras 1 and 6).
• The charge passes across. The new lender takes over the personal and real guarantees attached to the loan (para. 2). The mortgage is not cancelled and re-registered; the transfer is annotated on the property register, and the annotation can be requested without formalities.
• No costs. No fees or commissions may be imposed on the customer for granting the new loan, for the file work and for cadastral checks. Lenders may not charge the customer any cost, even indirect, for the formalities of the operation (para. 4). The Banca d’Italia glossary adds that both the closure of the old contract and the granting of the new one are completely free.
• Taxes keep their benefits. Subrogation by the debtor’s choice and renegotiation do not make tax benefits lapse (para. 8).
• Scope. The rules apply to loan contracts concluded by banks and financial intermediaries with individuals or micro-enterprises, and do not apply to financial leasing (para. 9).

The 30-working-day clock

The subrogation must be completed within thirty working days from the date on which you ask the new lender to obtain from the original lender the exact amount of your remaining debt (para. 7). If it is not completed in time because of the original lender, that lender must pay you compensation equal to 1% of the loan’s value for each month or part of a month of delay. It can seek reimbursement from the new lender if the delay was down to the latter.

Calculation, not a quote: on a loan with a value of €150,000, one month or part of a month of delay due to the original lender gives 1% × €150,000 = €1,500; two months or part of them, €3,000.

When it is worth doing

The law removes the cost of the move, so the test is the offer. Before you ask a new lender to take over the loan, compare:

1. The rate and the spread against what you pay now. See fixed or variable rate if you also want to change rate type.
2. The remaining term and balance. The new loan covers the residual debt; a longer term lowers the instalment but raises the interest paid in total.
3. The cost summary. Ask the new lender for the personalised information sheet (PIES) and compare its APR with your present contract; the method is explained in TAEG vs TAN. Be careful with a low first-months rate: the Banca d’Italia warns the gap between an entry rate and the later rate can be large.
4. Insurance. If the new lender wants its own policy, you may offer an equivalent one: see mortgage insurance and life cover.

You can also ask your current lender to renegotiate. Under para. 5, the original lender and the debtor may agree to change the terms of the existing contract at no cost, by private agreement even if not notarised. That is a different route from moving the loan, and it does not stop you from moving afterwards.

Surroga and your income tax

The Agenzia delle Entrate’s guide for the 2026 tax return (income of 2025) treats the interest on a mortgage for a main home as eligible for a 19% deduction, up to €4,000 of interest a year. It adds that, from tax year 2025, for taxpayers with total income above €75,000 who signed a mortgage from 1 January 2025, the deduction is capped according to income and dependent children. The same guide says that for a loan affected by a takeover, renegotiation or surroga the date to use is that of the surroga contract. In practice, if you have income above €75,000, check with the Agenzia or an accountant whether a surroga would bring a loan that dates before 2025 under the new limit. Payotte has not read the detail of that limit.

Which professional to consult

A mortgage broker can compare offers for a surroga, but the move is free by law, so ask how the broker is paid. A notary is not always involved: art. 120-quater says the annotation can be requested with a certified copy of the surroga deed, made by public deed or private agreement.