Italy proposes extension of first-home mortgage guarantees until 2029

The Italian government has proposed extending reinforced state guarantees for first-home mortgages until December 31, 2029, as part of the 2027 Budget Bill. The proposal includes an additional 200 million euros for each year in 2028 and 2029, totaling 400 million euros in extra funding for the Guarantee Fund.

The measure, managed by Consap on behalf of the Ministry of Economy, aims to assist individuals in securing financing for their primary residence. For applicants under the age of 36 with an ISEE (Equivalent Economic Situation Indicator) not exceeding 40,000 euros, the public guarantee can cover up to 80% of the loan's principal amount. This is intended to reduce risk for banks and facilitate credit access for those with limited savings or less stable employment.

To qualify, the mortgage must be for a primary residence, and the requested amount must exceed 80% of the property price. The maximum loan amount allowed under the Fund is 250,000 euros. Luxury properties, such as those in cadastral categories A/1, A/8, and A/9, are excluded. The guarantee also applies to purchases involving renovation or energy efficiency improvements, but does not cover the renovation of a property already owned.