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Mortgages · Glossary

Mortgage glossary

Italian mortgage terminology, explained simply. Search for a word or browse by letter; each entry is a guide to reading documents and asking more precise questions.

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52 terms

A

Amortisation
Gradual repayment of a loan through scheduled instalments, normally comprising principal and interest.

B

Binding offer
An offer binding on the lender for its stated period. Italian consumer mortgage rules provide at least seven days for reflection; the consumer may accept earlier.
Bridging loan
Temporary borrowing to cover a short-term need, for example pending another property sale. Review its terms and risks with the lender.

C

CAP
A contractual ceiling on the interest rate of certain variable-rate mortgages. Its operation and any other charges or limits depend on the contract.
Cedolare secca
An Italian substitute tax regime for eligible rental income. It is not a mortgage type or a mortgage benefit.
Centrale dei rischi
The Bank of Italy credit register, covering loans and guarantees under reporting rules and thresholds. An entry does not automatically indicate a poor payment record.
Credit scoring
A score or assessment produced using information about the applicant. It is one part of the lender’s assessment, rather than the entire process.
Creditworthiness
Assessment of a borrower’s ability to meet repayment obligations using financial circumstances and available information.
CRIF and SIC
CRIF is a company operating a private credit information system (SIC). Private SIC databases contain credit application and repayment information and are separate from the Bank of Italy register.

D

Debt consolidation
Combining existing debts into a new loan. Compare its term, security and total cost as well as its monthly payment.
Disbursement
The lender’s release of funds. This may occur at signing or later under the agreed terms and is distinct from mortgage approval.
DTI (Debt to Income)
The ratio of total debt to annual disposable income. This differs from monthly debt payments divided by monthly income; check the lender’s calculation.

E

Early full repayment
Repayment of the entire debt before maturity. Request a settlement statement specifying the amounts and settlement date.
Early repayment
Partial or full repayment before maturity. For partial repayment, check how payments or the remaining term will change.
Energy performance certificate / APE
The Italian energy performance certificate describes a property’s energy performance. It is relevant to the transaction and may be considered for specific mortgage products.
Euribor
A money-market benchmark used in many variable-rate mortgages. The contract specifies the relevant tenor, rate and lender margin.
Eurirs
A market benchmark used to set many fixed mortgage rates. The contractual rate also depends on the margin and offer terms.

F

First Home Guarantee Fund
A public guarantee scheme for eligible mortgages. Check current Consap information and participating lenders for eligibility and availability.
Fixed-rate mortgage
A loan with an interest rate fixed for its term. In a standard level-payment schedule, the principal share rises as the interest share falls.

G

Guarantor
A person undertaking a guarantee obligation towards the lender. Its scope, duration and consequences should be understood before signing.

I

Interest component
The part of an instalment payable as the charge for borrowing.
Interest payable
The charge for using borrowed capital, calculated according to the contractual rate, periods and rules.

L

LTI (Loan to Income)
The ratio of the loan amount considered to annual disposable income, one indicator of borrowing levels.
LTV (Loan to Value)
The loan amount as a percentage of the property value used by the lender. For example, €180,000 divided by €240,000 is 75%. Check the valuation basis in the offer.

M

Mixed-rate mortgage
A loan combining fixed and variable periods or components, or allowing changes between them under contractual rules.
Mortgage approval
The lender’s decision on an application and its terms. Check reservations, outstanding documents, validity and conditions for disbursement.
Mortgage assessment
Review of the application, income, debts, credit history and property. The lender may request further information before deciding.
Mortgage instalment
A scheduled payment under the loan agreement. Consider its amount and frequency alongside the term, rate type and total cost.
Mortgage insurance
Insurance linked to a loan. Distinguish lender requirements, such as property fire cover, from optional policies, and examine costs, exclusions and terms.
Mortgage payment moratorium
A temporary suspension of some or all payments where applicable conditions are met. Check effects on interest, term and repayment resumption.
Mortgage portability / surroga
Transfer to a new lender to refinance the outstanding debt while retaining the mortgage security. Where Italian statutory portability rules apply, it is free for the borrower.
Mortgage renegotiation
An agreement with the existing lender to change the rate, term or other conditions, distinct from transferring to another lender.
Mortgage security / ipoteca
Security created by registration in the property registers. In default, the lender may enforce against the property under the applicable procedures.
Mortgage term
The loan repayment period. For the same principal and rate, a longer term lowers instalments but increases total interest.

O

Outstanding principal
Principal still owed at a given date. The lender’s settlement statement may include other amounts due in addition to principal.

P

Payment relief
A general expression for measures that reduce instalments. A lower payment, for example through a longer term, does not necessarily mean a lower total cost.
Payment suspension
Temporary suspension of all or the principal portion of a payment where permitted. Interest treatment depends on the applicable scheme or agreement.
PIES / ESIS
The European Standardised Information Sheet: personalised information for comparing mortgage features, costs and terms. Receiving it does not by itself mean final approval or a binding offer.
Pre-amortisation terms
Terms applying before ordinary principal repayments begin, when interest on disbursed capital may be payable. Duration and calculation depend on the contract.
Pre-approval
A preliminary assessment, often focused on income. It is subject to validity and conditions and does not replace property checks or final approval.
Principal component
The part of an instalment that reduces outstanding principal.
Property valuation / appraisal
Assessment by the lender’s appointed valuer of the property offered as security. It does not automatically replace all planning, cadastral and notarial checks for the purchase.
Property value
The value attributed to a property for the transaction. The agreed price may differ from the value used by the lender.

R

Rate conversion
A change between rate types, for example variable to fixed, allowed by the contract or subsequently agreed with the lender.
Rent to buy
An arrangement for immediate use of a property with a right to buy later under agreed terms. It is not a mortgage and requires separate contractual assessment.
Repayment schedule
A schedule of due dates, instalments, principal and interest. Future figures for variable-rate loans depend on interest-rate assumptions.

S

Spread / lender margin
The margin added to a reference benchmark under the contractual interest-rate formula.
Step-rate clause
A provision for payments to change at specified dates or under agreed criteria. Later payments must be examined as well as initial ones.

T

TAEG / APRC
The annual percentage rate of charge, including interest and relevant credit costs. It does not cover every purchase expense or notarial fees; consult the ESIS for details.
TAN / nominal rate
The nominal annual interest rate on the loan principal, excluding the other costs included in the APRC.

U

Usury threshold
The legal interest-rate ceiling under Italian anti-usury rules. Thresholds vary by loan category and period and require current reference data.

V

Variable-rate mortgage
A loan tied to a benchmark that can change over time. Changes may affect payments or the term according to the contract.
Sources and further information

General information on the Italian mortgage process, reviewed on 20 October 2026. Specific terms and checks remain with the lender, authorised credit intermediary and notary.

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