The New Rates of loan on the sale of the fifth

Sale of the fifth 2016: the news in force since January

Sale of the fifth 2016: the news in force since January

How have the loans changed in 2016? A question that interests many Italians looking for a financing solution. The main changes concern the sale of the fifth year 2016, which saw the entry into force of new rules on rates and the provision of credit to pensioners.

Indeed, the threshold rates relating to the Taeg to be applied to loans on the sale of one fifth of the pension have been updated. On 5 January, Social Institute announced that, following the decree of 21 December 2015, the Ministry of Economy indicated the new global average effective rates (TEGM) which banks and financial intermediaries will have to comply with from 1 January to 31 March. 2016.

But how does this impact on loans to retirees? Before going into detail it is essential to clarify what the loans on the sale of the fifth of the pension are.

Transfer of the fifth to pensioners: what it is and how it works

Transfer of the fifth to pensioners: what it is and how it works

The assignment of the fifth is a particular type of personal loan which provides for the reduction of the monthly installment directly from the applicant’s pension or salary. The interest rate is fixed and the maximum expected duration of the loan is 10 years.

While for workers it is the employer who undertakes to cut the installment from the salary and pay it to the bank or financial provider, for pensioners the repayment of the monthly payments takes place through the social security institution.

As far as guarantees are concerned, a life insurance policy is envisaged to cover the risk of the debtor’s lack of priority. Coverage that the pensioner is obliged to sign in order to be able to access the assignment of the fifth (for employees, insurance against employment risk is also required).

In any case, as the name suggests, the loans on assignment of the fifth 2016 provide for a maximum monthly installment equal to the fifth part of the pension received by the applicant.

Sale of the fifth Social Institute: the new rates in force

Sale of the fifth Social Institute: the new rates in force

But let’s go back to the transfer rates of the fifth 2016 set by the Ministry of Economy for the period from January to March. The new average rates are 12.2% for loans up to 5 thousand USD (usury rate 19.25%) and 10.99% for loans over 5 thousand USD (usury rate 17.74 %).

For pensioners, on the other hand, the threshold rates set for the Taeg vary according to the age of the applicant and the amount paid. In detail, for pensioners up to 59 years of age who apply for loans of up to $ 5 thousand the rate is 9.09%, while for loans with a higher amount the rate is 8.71%.

In the same way for pensioners between 60 and 69 years of age who apply for loans of up to 5 thousand USD the rate is 10.69%, while for loans with amounts over 5 thousand USD the rate is 10, 31%.

Finally, we find pensioners aged between 70 and 79 years, for whom the loan rate of up to $ 5,000 will be 13.29%, while for higher amounts it is 12.91%.

New Government Agency mortgage loan for first home purchase

Government Agency first home loan for employees and public pensioners

Government Agency first home loan for employees and public pensioners

Buying a house is one of the reasons why Italians are more willing to go into debt. Thanks to the consequences of quantitative easing applied by the MCB, this is a particularly advantageous period for those who wish to apply for a mortgage. A scenario in which the Government Agency mortgage for first home purchase is one of the most competitive offers.

It is a product dedicated exclusively to those who refer to the public sector. They then have access to mortgage Government Agency for first home purchase only public employees and retirees.

However, being a public employee or pensioner is not sufficient for access to credit. It is also necessary to satisfy a series of requirements. First of all, to be registered with the Social Institute Credit Fund, the Unitary Management of credit and social benefits. Fund to which the applicant must be registered for at least one year.

In order for the Government Agency mortgage for first home purchase to be granted, it is also necessary that the public employee or pensioner who submits the application does not own any other home located on Italian territory. Requirement that also extends to other members of its family.

However, there are some exceptions, namely scenarios in which it is possible to obtain the Government Agency mortgage for the purchase of a first home even if already a homeowner.

Amounts and refund

Amounts and refund

Now that we have seen who the Social Institute ex Government Agency mortgages are aimed at for the purchase of the first home, let’s move on to the financeable amount and the repayment conditions.

By using these products, it is possible to obtain a sum of up to 300 thousand USD.

The amount payable, however, cannot exceed the value attributed to the property during the appraisal by the technicians appointed by Social Institute. In the same way, it is not possible to obtain a sum higher than the purchase price that was declared in the deed of sale of the real estate unit.

The repayment plan is in the French style and provides for constant and deferred half-yearly installments. It can last 10, 15, 20, 25 or 30 years. However, mortgages requested by those who have already turned 65 are an exception, in which case the maximum expected duration is 15 years.

The new rates 2018

The new rates 2018

As regards the interest rate, it can be fixed or variable. In the first case we have a Tan defined on the basis of the loan to value (LTV) method or in relation to the relationship between the value of the mortgage and that of the house. Below is the table with all the values ​​applied to the Tan for fixed rate first home mortgages.

Those who opt for variable rate mortgages instead can benefit from a Tan equal to the value of the 6-month Euribor plus 200 basis points.

Government Agency mortgage application

Finally, let’s move on to the question of the Government Agency loan request for first home purchase. The loan application must be sent electronically, through the online service on the Social site.

To send the request you must be in possession of the Social Institute Pin. code that can be requested at an Social Institute office or using the wizard on the Social Institute website.

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