Social Institute loans for mortgage repayment: who can apply for them?
There are many Italians who find it difficult to support a mortgage signed years ago, but it is not always possible to pay it off early. A situation in which public employees and retirees are undoubtedly advantaged compared to other categories of taxpayers, since they can resort to the Social Institute loan for mortgage repayment.
This is a loan at subsidized conditions disbursed by Social Institute in favor of subjects registered in the Public Employee Management. The Social Institute loan for mortgage repayment falls into the category of multi-year Social Institute loans ex Government Agency.
Loans granted only for documented needs falling within the cases envisaged by the Social Institute Loan Regulation. Among the purposes envisaged for long-term loans we find the extinction of an old mortgage loan. But let's see what are the requirements to access the Social Institute loan for mortgage repayment.
Government Agency Social Institute 2016 2017 loans for mortgage repayment: the contractual conditions
Since this is a multi-year loan, the loan for extinguishing the loan is accessible only to pensioners and civil servants registered for the unitary management of credit and social benefits, the Social Institute credit fund through which loans are granted pursuant to Government Agency.
For access to credit, it is also necessary to be able to have at least four years of service seniority to the pension and not less than four years of contributory payment paid to the aforementioned Unitary Management.
With regard to the contractual conditions, the loans for mortgage repayment have a ten-year duration and the repayment of the credit takes place through an amortization plan in monthly installments, reduced directly from the paycheck or from the applicant's pension.
The interest rate is 3.5%. The amount that can be financed varies from case to case and is defined on the basis of the amount that the applicant must pay to the lender to pay off the current loan in advance.
It should also be remembered that in addition to the interest rate, a rate of 0.50% for administration costs and a share for the payment of the premium for the Social Institute risk provision also apply to the gross loan amount. The latter is defined on the basis of the age of the applicant and the duration of the loan.
Social Institute Loans 2016: application form and documents to be attached
The Social Institute loan application for mortgage repayment must be drawn up using the specific application form available on the official Social Institute website. The following documents must therefore be attached to the request :
- self-certification of the applicant's family status;
- mortgage deed ;
- title of ownership of the property.
In addition to the documents listed above, it is also necessary to submit a declaration in which the lending institution certifies the amount necessary to be able to pay off the mortgage. The document must also specify which title the loan was granted and the identification data of the property on which the mortgage was opened.