Published by carratelli4 years ago

We're currently experiencing a global pandemic that has transformed into a true social emergency, and this has happened, as we know, in Italy too...

We are currently experiencing a global pandemic that has transformed into a true social emergency, and this has also occurred, as we know, in Italy. 

 

An emergency that has become a real war against an invisible virus Covid-19 which has claimed many victims and is generating great economic uncertainty for the future. A valid alternative at this time for future investments is real estate. 

 

Especially when it comes to purchasing with a mortgage. Let's see why... There's a sort of inverse relationship between mortgages and the economy: when the economy worsens, mortgage rates become more advantageous. To fully understand what was written above, we must consider that mortgage rates are composed of the spread, which remains unchanged until the end of the contract decided by the bank, and the two interbank rates, which are subject to market variability. When talking about a fixed rate, banks use the Eurirs as an index, which must have the same duration as the mortgage. However, if we're talking about a variable rate, the Euribor is used. 

 

If we look at the reference index used to calculate the fixed rate, the Eurirs, we see that unlike previous years where it had always remained constant, in March it turned negative, falling below zero to -0.08%. This is resulting in a substantial difference in cost between a fixed-rate and a variable-rate mortgage; currently, a fixed-rate mortgage is more advantageous than a variable-rate mortgage. 

 

There are additional benefits to purchasing a property. For example, through the CONSAP guarantee, lenders offer 100% of the property's purchase price to young couples. Those who don't qualify for this guarantee can receive up to 95% coverage. Although the restrictions imposed by COVID-19 are restrictive, they do not prevent you from applying for a mortgage or contacting a lenders through their online channels, which follow all the necessary procedural steps.

 

In short, therefore, those who take out a new mortgage or request a transfer have the opportunity to save significantly on the cost of the money itself in terms of rates and flows.

Carratelli

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