How to get mortgage and Social Institute loans for home purchase
How to get home financing on favorable terms
Social Institute manages various opportunities to access credit provided at competitive conditions for various categories of workers. One of the intended purposes is to purchase the main house. But what requirements must applicants comply with and what characteristics do Social Institute home purchase loans provide? Let’s analyze the question point by point.
The Social Institute home purchase loans also involve very different products, different both in terms of contractual conditions and from the point of view of the requirements necessary to proceed with the request.
A first solution is represented by the multi-year Loans for Post Fund Management. This is a credit line addressed to employees of Poste Italiane and associated companies.
The repayment process is five-year or ten-year and is based on the assignment of the fifth. The installment cannot therefore exceed 1/5 of the monthly allowance. As part of the requirements, we note a length of service of at least four years. A very valid Taeg of 3.50% is applied.
This funding can be requested only on condition that the application is consistent with the purposes set out in the Social Institute regulation. Among these we have the purchase and construction of the first house. In both cases (purchase or construction), financing may be requested for the employee’s first or second home, or for the children’s first home.
The required documents
In the specific case of the Social Institute ex Ipost long-term loans required for the purchase of a house, it is also necessary to present the compromise of sale and the copy of the checks or the transfer paid to the seller at the time of signing the compromise for an amount not less than 5 % of the agreed price.
Those who apply for a multi-year loan for the construction of a house must produce the following attachments, in addition to the above documents.
- A certified copy of the building permit
- A quote of the works written by professionals (registered in professional registers);
- A declaration drawn up by the works manager stating that the works are in progress and their progress.
- Certified copies of the invoices that demonstrate the expenses made for the construction of the house and with an amount equal to at least 5% of the total cost.
Loans for civil servants
Public employees and pensioners enrolled in the unitary management of credit and social benefits can take advantage of two products that fall into the category of Social Institute loans for home purchase.
The first of these is the direct multi-year loan. We are talking about a loan on the sale of the fifth with a five-year or ten-year duration. Also in this case, the purpose of the loan must be specified, those admitted are reported in the relative regulation (available on the Social Institute portal).
In general, these are personal or family needs. The amount that can be financed varies according to the reason for which the loan is requested. In the case of Social Institute loans for home purchase, the maximum amount that can be paid is set at € 150 thousand.
As regards the interest rate, we note a nominal annual rate of 3.50%. But there are some expenses to keep in mind, we are talking about administrative costs (0.50%) and risk fund premium.
Presentation of the application
The Social Institute loan request for home purchase must be sent using the service of the Social Institute website ” Multi-year Loans web applications “. Employees must send the request in collaboration with the relevant administration. Retirees, on the other hand, must take advantage of the Social Institute website. In particular, the reserved area must be used, possession of the PIN (identification code provided by the pension institution) is essential.
The application forms can be downloaded directly from the official Social Institute website, following the path: “Home – Services and Services – All modules – Public Employee Management – Registered / Retired – Credit and social benefits”.
Features of the first Social Institute home loans
The latest proposal, which falls within the Social Institute home purchase segment, is the Social Institute mortgage loan. They are products designed for those on duty and pensioners registered in the unitary autonomous management of credit and social benefits who wish to purchase the home, carry out maintenance work on it or purchase a garage.
Pensioners and civil servants hired on permanent contracts enrolled in the Unitary Management of credit and social benefits can obtain funding. For pensioners, a registration period of not less than one year is also required.
Fundable amounts and reimbursement
The sums granted change according to the request. If in fact this is aimed at the purchase or construction of the main house, the maximum sum is 300 thousand USD.
For renovation, transformation or expansion of the first house, the maximum sum is 150 thousand USD. The limit of 40% of the value of the home must be respected. The third purpose is the purchase or construction of a garage or parking space. The maximum sum corresponds to 75 thousand USD.
The repayment can take place in 10, 15, 20, 25 or 30 years. The only exceptions are applicants who, at the time of submitting the application, have already reached the age of 65, for which the maximum duration that can be requested is 15 years.
There are two options regarding the interest rate. The fixed rate is 2.95%, while the 6 – month Nice Bank is increased with the variable rate, increased by 200 basis points. The administration costs are also retained in advance on the loan amount, which amount to 0.50% of the gross amount of the service.
Question and simulation
The request for funding must be submitted electronically within specific periods of the year: the first ten days of January, May or September. On the official Social Institute website there is also a complete list of documents to be attached to the application, which varies according to the purpose of the loan.
Those who wish to simulate a mortgage loan granted by the Social Institute Public Employee Management can use the appropriate service, accessible by following the path: Home – Services – Public Employee Management: construction mortgage loan management.