Social Institute mortgages ex ex Government Agency
The effects of the policies carried out by the Medium Centrum Bank have led to a lowering of the rates applied to mortgages. Interests that have in fact reached historic lows. Nonetheless, Social Institute civil servants mortgages represent a valid alternative to the offers presented by banks and financial companies.
But how do Social Institute public employees mortgages work? These are mortgage loans granted by the social security institution through a special credit fund, the Unitary Management of credit and social benefits. Guaranteed by a real estate mortgage, Social Institute public employees mortgages can be requested for various purposes.
Mortgages for the management of public employees
With the new Social Institute Mortgage Regulation, which came into force with the approval of Presidential Resolution no. 79 of 24 July 2015, new spending purposes were in fact introduced.
Until then it was possible to request only mortgages for the purchase of the first home, but the 2015 Regulation also included the possibility of obtaining Social Institute mortgages also for renovation and maintenance works. Among the purposes foreseen by the Regulations we also find the purchase of a parking space or a garage.
Specifically, the updated regulation provides for three categories of interventions.
- Own purchase or construction, assignment by cooperative companies in shared ownership, expansion or completion on land owned by the first house. The accommodation should not be considered a luxury home, pursuant to DM n. 1072 of August 2, 1969.
- Execution of expansion, adaptation, maintenance works (both ordinary and extraordinary), renovation or transformation of the home. The property must not be a luxury home. It is also possible to finance interventions related to the house in co-ownership with the spouse.
- Own purchase or construction of a parking space or garage that will be used as a property of the home (or jointly owned by the spouse). The garage / parking space must not be more than 500 meters from the house, which must not be a luxury property.
In any case, in order to obtain Social Institute public employee mortgages, the property must be used as the residence of the member and his family.
The amounts payable
But how much do you get? The new regulation provides that the maximum amount that can be financed varies according to the purpose of the loan. For financing aimed at the purchase, assignment, construction of the first house, etc. the maximum amount that can be financed is set at $ 300 thousand.
The amount payable is reduced instead in the case of loans for restructuring, maintenance, etc. Hypotheses in which it is possible to obtain up to 40% of the real estate value of the house. However, it is not possible to exceed the limit of 150 thousand USD.
In case of purchase or construction of a garage or a parking space, a maximum amount of $ 75 thousand is envisaged. The borrower can also request the granting of an additional sum, up to $ 6,000, with which to bear the costs relating to any optional mortgage policy. In any case, it is not possible to exceed the aforementioned limits.
How to apply for the Government Agency mortgage
Finally, let’s move on to submitting the application. The request must be submitted to Social Institute online, using the specific dedicated service. The application must be completed in every part and complete with the substitute certification declarations necessary according to the purpose of the loan.
The request form can be downloaded directly from the official Social Institute website. On the same portal there is also a list of all the documents necessary for the mortgage application as well as the models for any sworn expert reports.
As regards the submission of applications, Social Institute identifies specific time windows. Applications can be sent:
- from 1st to 10th January;
- from 1st to 10th May;
- from 1st to 10th September.
In the event that the resources made available by Social Institute are not sufficient to satisfy all the applications received, each location Social Institute is responsible for drawing up a ranking.