Italian mortgage costs rise due to increasing interest rates

Rising interest rates are significantly increasing the cost of mortgages in Italy. According to a simulation by Credipass, a person taking out a €130,000 mortgage over 25 years in October could face costs up to €13,489 higher than those seen in February.

This increase is driven by rising Irs and Euribor rates, following monetary tightening by the European Central Bank. For fixed-rate mortgages, the average rate rose from 2.982% in February to 3.49% in October, increasing the monthly installment from approximately €615 to €650. For variable-rate mortgages, installments are also expected to rise.

Mortgage holders must choose between different structures: fixed rates provide budget certainty with constant installments, while variable rates fluctuate based on market benchmarks like Euribor. Hybrid options, such as variable rates with a cap or constant installment variable rates, also exist to manage risk.