When it comes to mortgages, the best options lie in long-term fixed-rate deals and preferential terms

To be eligible for the First Home Guarantee Fund, you must not own any other residential properties, either in Italia or abroad, at the time of applying for the mortgage. Exceptions are made for properties inherited or lent free of charge to parents or siblings. Furthermore, the mortgage applied for must not exceed 250,000 euros. Those eligible for the Fund include young people under 36, young married or cohabiting couples, single-parent families with minor children, families with three, four or five or more dependent children under the age of 21 with ISEE figures not exceeding 40, 45 and 50,000 euros respectively, and, finally, social housing tenants and large families who meet the established ISEE limits.

From 3 August 2026, the Fund will also be available to people with a permanent disability recognised under Law 104, and to households that have been living for at least two years with a family member with the same condition. There are two types of guarantee: the standard guarantee, which covers 50 per cent of the principal amount of the mortgage, and a second guarantee which can reach – and in rare cases even exceed – 80 per cent (the option to obtain the enhanced guarantee has been extended until 31 December 2027).

Despite these new opportunities, challenges remain in the market. For mortgages with a high Loan-to-Value ratio (the percentage ratio between the amount of the loan requested and the market value of the property), i.e. over 80 per cent of the property’s value, access to the Consap guarantee continues to depend on the policies of individual banks. At present, only a few banks extend the guarantee to young people with an ISEE in excess of 40,000 euros, a threshold that is easily exceeded by those still living with their parents.

Apart from the Fund and the government guarantee, anyone taking out a mortgage today faces variable instalments that are around 4.4 per cent lower than the corresponding instalments at fixed rate: for a 30-year mortgage of €150,000 to purchase a property in energy efficiency class G, the best variable-rate offers (analysed at the end of July) stand at around €595 per month, compared with around €635 for the best fixed-rate options. ‘Taking into account the expected increases in the cost of borrowing, which are necessary to counter inflationary pressures,’ explains Guido Bertolino, head of business development at MutuiSupermarket.it – “this gap would be completely closed by the end of the year, whilst over a five-year horizon, the variable-rate mortgage would result in total costs approximately 1,000 euros higher than those for a fixed-rate mortgage.” According to the expert, in fact, looking ahead to the next five years, the best offers forfixed-rate mortgages will be slightly cheaper in terms of total cost of instalments repaid, as well as offering the advantage of instalment certainty.

For most young people, however, the real obstacle continues to be the affordability of the monthly repayments. In June, almost 73 per cent of new mortgage borrowers under the age of 36 applied for a high LTV mortgage, a sign that many buyers have limited savings and need a loan that covers almost the entire cost of the property. ‘Banks carefully assess the ratio between monthly repayments and income,’ explains Bertolino. ‘For fixed-rate mortgages, a repayment of up to 35 per cent of net household income is generally accepted, whilst for variable-rate mortgages the threshold is normally reduced to 30 per cent, to take account of any rise in interest rates over time.’ For a couple with a net monthly income of 2,800 euros, however, the maximum loan amount changes. With a variable-rate mortgage, the maximum sustainable instalment is around 840 euros, which allows them to secure a loan of around 215,000 euros over 30 years. If, on the other hand, they opt for a fixed-rate mortgage, the instalment can rise to €980, allowing them to secure a loan of around €235,000.

“Generally speaking, Consap mortgage rates are lower than those for standard mortgages,” adds Bertolino. “For standard mortgages up to 80 per cent LTV, the rates are now almost always the same for those under 35 and those over 35. Fewer and fewer banks are maintaining age-based pricing: over the past year, in fact, they have reduced rates for the over-35s, bringing them into line with those for the under-35s.” However, a comparison of offers should not be limited solely to interest rate. “Many banks are in fact introducing differentiated terms and conditions to attract new customers, particularly among young people,” the expert points out.

Some banks allow you to lock in a fixed rate provided that the mortgage is taken out by the autumn, thereby protecting the customer from any potential rate rises. Others issue a preliminary approval even before a property has been identified, allowing buyers to know in advance the maximum amount they can borrow and to enter negotiations from a position of greater strength. The range of green mortgages is also growing. In addition to incentives for properties already in energy efficiency class A or B, some banks extend these favourable terms to purchases involving energy-efficiency refurbishment works. Other banks, on the other hand, offer a reduction in the interest rate if, during the term of the mortgage, an improvement in the property’s energy efficiency class is certified.