How Government Agency 2018 fixed rate mortgages work
Although the current market conditions reserve more advantageous interest rates to those who request a variable rate mortgage, the Italians continue to prefer fixed rate mortgages. Loans that guarantee a constant rate and installment for the entire amortization plan. Among the best offers of fixed rate mortgages of the moment we mention the Government Agency fixed rate mortgage. See mccafferymysteries.com for a summary
Government Agency mortgages are products dedicated to public employees and pensioners. In fact, these are loans granted by Social Institute. Social security institution that absorbed the former Government Agency benefits following its abolition, which took place in January 2012. The reference office for the Government Agency loan application is the Social Institute Public Employee Management.
For access to credit, however, several requirements must be met. So let’s see who can get an Government Agency fixed rate mortgage and the conditions of the offer.
Who can get them
Government Agency fixed rate mortgages can only be obtained by public employees and pensioners registered in the Unitary Management of credit and social benefits (Social Institute Credit Fund). For civil servants it is necessary that the applicant is in service and can count on an open-ended employment contract.
Both employees and public pensioners must have been enrolled in the aforementioned Management for at least one year. Not only. For access to credit, the applicant and the other members of his family must not be owners of any other home located on the national territory.
However, exceptions are made for the latter requirement. Among which we remember, for example, the houses received by donation or in succession. Government Agency mortgages can also be obtained by those who own a home that has been declared unfit for use following events resulting from natural disasters.
Aims and amounts Government Agency fixed rate mortgage
As regards the purposes allowed for the Government Agency fixed rate loan, the loan can be requested to meet various expenses. In fact, it is possible to request a mortgage both for the purchase of the first home and for other purposes related to the home.
Specifically, the Government Agency Mortgage Regulation provides for three categories of interventions:
- Purchase, construction on one’s own, completion and / or expansion of owned land or assignment by cooperative companies in shared ownership of a non-luxury home.
- Execution of maintenance works (both ordinary and extraordinary), expansion, adaptation, renovation or transformation of the home.
- Purchase or construction of a garage or a parking space not more than 500 meters from the house, to be used as a property of the same.
In any case, for the purposes of accessing credit it is necessary that the property referred to is the only property owned by the applicant. The house must also be used as the residence of the applicant and his family.
The amount that can be financed varies according to the purpose. For mortgages intended for the purchase or construction of the house or for the other cases indicated in the first point, the maximum amount that can be financed is set at $ 300 thousand.
For mortgages intended for renovation or other interventions on the first house (maintenance, transformation, etc.) the maximum amount that can be financed is equal to 150 thousand. The financeable amount is reduced instead to 75 thousand USD for those who want to buy or build a garage or a parking space.
The repayment takes place in 10, 15, 20, 25 or 30 years and the amortization plan provides for six-monthly installments of a constant amount.
Mortgage rates 2018
As regards the interest rate applied to the Government Agency fixed rate loan, this is defined with the loan to value method. System that provides for the definition of the Tan based on the relationship between the mortgage value and the value attributed to the property.
Below is the table containing the rates applied to mortgages with fixed interest.
Government Agency mortgage application and calculation
The loan request must be sent electronically, using the specific service on the Social Institute official website. The application must be sent in compliance with the time windows set by the social security institution.
In fact, it is possible to transmit the application only in the following periods:
- from 1st to 10th January;
- from 1st to 10th May;
- from 1st to 10th September.
On the Social Institute portal there is also a service that allows you to calculate the installment of the Government Agency mortgage. For more information on how to carry out a mortgage simulation, please read our in-depth analysis.