Berlusconi announces changes to Italy's mortgage system
Berlusconi announces changes to Italy's mortgage system
The Italian government has provided an incentive for those thinking of investing in its property market. According to Homes Overseas, changes are to be made to the country's mortgage system.
Silvio Berlusconi's government has reached an agreement with
Italy's banks to revert mortgage payments back to lower levels, which were last recorded in 2006. Furthermore, banks will also switch variable-rate mortgages to fixed-rate ones.
At a news conference, the Italian prime minister commented on the new system: "We will introduce the possibility to go back to the mortgage rates of 2006." Berlusconi also revealed that the repayment period for mortgage holders will be extended.
Economics minister Giulio Tremonti said that the change from variable-rate to fixed-rate mortgages will bring relief to many homeowners. He went on to explain that after changing to a fixed-rate product, if average interest rates have risen at the end of the initially agreed mortgage, then the mortgage period will be extended. If, on the other hand, rates have fallen, then the banks will reimburse the homeowner with the difference.
The finer details of the new arrangements have not yet been finalised and, as such, it is not yet know when the deal will come into force.
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2 June 2008
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